FC CBO IV

FC CBO IV is a $368 million collateralized bond obligation that originally closed in August 2000.  We were selected as the replacement manager of FC CBO IV in February 2004, when the capital structure had delevered to $304 million and performing collateral totaled $267 million.  The FC CBO IV portfolio is mainly invested in high yield bonds, with a bank loan allocation of between 10% and 15%.  Trading flexibility is limited to credit risk, defaulted and equity securities.

Closing Date   August 15, 2000
Manager Replacement Date   February 18, 2004
Distribution Dates   March 15 and September 15
End of Non-Call Period   September 15, 2004
End of Reinvestment Period   March 15, 2006
Maturity Date   September 15, 2012
Type
Cash Flow CBO

Underwriter
Credit Suisse

Rating Agencies
Moody's, S&P

Trustee
Bank of New York

Portfolio Manager
Joe Lemanowicz

CDO Analyst
Renée Gallizzo
+1 973 802 4204





  Tranche   Initial Ratings   Ratings on Replacement Date   Current Ratings   Original Principal Amount ($)   Balance on Replacement Date ($)   Balance After 3/15/09 Payment Date ($)   Interest Rate  
  Class A Notes   Aaa/AAA  Aa3/AAA  WD   273,000,000 203,907,204 0   6M LIBOR + 0.41%  
  Class B-1 Notes   Baa2  B1  Caa1  21,400,000 24,144,792 8,449,465   9.27%  
  Class B-2 Notes   Baa2  B1  Caa1  28,000,000 29,424,336 10,155,126   6M LIBOR + 2.00%  
  Class C Notes   Ba2  Caa3  C  8,000,000 9,686,754 19,535,981   13.17%  
  Preferred Shares   NR  NR  NR  37,300,000 37,300,000 37,300,000   Excess Interest  
Total         367,700,000   304,463,086   75,440,572    
  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.