ML CBO XIV Series 1998-E&P-1

ML CBO XIV is a $244 million collateralized bond obligation that originally closed in April 1998.  We were selected as the replacement manager of ML CBO XIV in February 2001, when the capital structure had delevered to $226 million and performing collateral totaled $162 million.  The ML CBO XIV portfolio is invested in high yield bonds.  Trading flexibility is limited to defaulted and equity securities.

Closing Date   April 8, 1998
Manager Replacement Date   February 26, 2001
Distribution Dates   February 23 and August 23
End of Non-Call Period   February 23, 2001
End of Reinvestment Period   February 23, 2003
Maturity Date   February 23, 2010
Type
Cash Flow CBO

Underwriter
Merrill Lynch

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 2/23/09 Payment Date ($)   Interest Rate  
  Class A-1 Notes   Aaa/AAA  Aaa/AAA  NR  59,000,000 41,485,031 0   6.365%  
  Class A-2 Notes   Aa2/AA  Baa3/BBB-  Caa1/CC  67,000,000 67,000,000 14,681,602   6M LIBOR + 0.47%  
  Class A-3 Notes   Aa2/AA  Baa3/BBB-  Caa1/CC  50,000,000 50,000,000 10,956,419   6.655%  
  Class B Notes   Baa3  Ca  C  32,000,000 32,000,000 32,000,000   6M LIBOR + 1.40%  
  Class C Notes   NR  NR  NR  35,500,000 35,500,000 35,500,000   Excess Interest  
Total         243,500,000   225,985,031   93,138,021    
  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.