BANK ONE is reportedly considering a collateralized loan obligation to shift some of its loans off its balance sheet. Linda Bammann, loan portfolio manager at BANK ONE, declined to comment. The bank is reportedly weighing whether to shed investment grade or below investment grade loans. One source said the bank was in discussions with Goldman Sachs, but nothing had been mandated yet. A Goldman banker said nothing for BANK ONE is in the firm's pipeline.
Some market players who were not aware of a deal from BANK ONE said they were not surprised to hear that the bank may be considering a balance sheet CLO, as the bank--and others--wrestles with its portfolio.