BEA CBO 1998-1

The BEA CBO is a $342 million collateralized bond obligation that originally closed in May 1998. We were selected as the replacement manager of the BEA CBO in September 2002, when the capital structure had delevered to $292 million and performing collateral totaled $225 million. The BEA portfolio is invested in high yield bonds. Trading flexibility is limited to credit risk, credit improved, defaulted and equity securities.

Closing Date   May 21, 1998
Manager Replacement Date   September 9, 2002
Distribution Dates   June 15 and December 15
End of Non-Call Period   June 15, 2004
End of Reinvestment Period   December 2, 2002
Maturity Date   June 15, 2010
Type
Cash Flow CBO

Underwriter
Bear Stearns

Rating Agencies
S&P, Fitch

Trustee
US Bank

Portfolio Manager
Joe Lemanowicz

CDO Analyst
Edwin Wilches
+1 973 367 3447





  Tranche   Initial Ratings   Ratings on Replacement Date   Current Ratings   Original Principal Amount ($)   Balance on Replacement Date ($)   Balance After 6/14/09 Payment Date ($)   Interest Rate  
  Class A-1 Notes   AAA/AAA  AAA/AAA  NR  57,000,000 7,100,284 0   6M LIBOR + 0.25%  
  Class A-2A Notes   AAA/AAA  BBB+/BBB-  CC/C   182,150,000 182,150,000 11,035,241   6.72%  
  Class A-2B Notes   AAA/AAA  BBB+/BBB-  CC/C   31,844,406 31,844,406 1,929,238   NA  
  Class A-3 Notes   A-/A-  BB+/CCC  D/C  26,000,000 26,000,000 26,000,000   5.66%  
  Class B Notes   NR/BBB-  NR/C  NR  45,000,000 45,000,000 45,000,000   7.56%  
Total         341,994,406   292,094,690   83,964,479    
  NR = not rated, N/A = not applicable






Prudential Investment Management is the primary asset management business of Prudential Financial, Inc. Prudential Fixed Income is Prudential Investment Management's largest public fixed income asset management unit and operates through Prudential Investment Management, Inc. (PIM), a registered investment advisor. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates.