BANK ONE has reportedly closed a $333 million balance sheet collateralized loan obligation--BOSS 2001-1-- last week. Bankers said the vehicle enables BANK ONE to move senior secured bank loans off its balance sheet, reducing the amount of allocated capital the bank needs to hold against the loans. A spokesman for the bank declined to comment on the transaction, but said, "it is consistent with what they have done in the past."
J.P. Morgan underwrote the transaction, which reportedly included credit default swaps to guarantee performance on the loans in the special purpose vehicle. The market was awaiting a move by BANK ONE as speculation that the firm would move off underperforming assets began in the beginning of the year (LMW, 1/29).