Apparently collateralized loan obligations are back in style.

Fleet Boston, which has been quiet since its monumental distressed debt Patriarch deal in January, was seen in the market last week with a $500 million high yield CLO, the latest in Fleet's Flagship series. Goldman Sachs is placement agent for the deal.

Though price talk was initially 48 basis points over the six-month Libor, sources indicated that Goldman was pushing to price the most senior, seven-year triple-A class at 45 over, against a resistant European buyside.

The deal also includes a $50 million, single-A-rated B-class, a $17.5 million triple-B-rated C-class and a $17.6 million double-B-rated D-class. Further pricing details were available at press time.

Flagship has a diversity score of 40 and an average rating of B1 (Moody's Investors Service). The portfolio consists of at least 95% high-yield loans and up to 5% bonds.

Trust Company of the West, a California-based lobal investment company, began marketing the equity for its $400 million CLO at an internal rate of return of 16%, market sources said.

The deal will be backed by senior secured bank loans. TCW Group has an $80 billion portfolio of assets, of which $37.5 billion are fixed income assets. The firm has 300 investment and administrative professionals.

J.P. Morgan Chase priced a $461 million CLO for First Source Loan Obligation last week. The collateral manager, understood to be Dominion, retained a $190 million B-class. MBIA wrapped the deal.

Out of Europe, BNP Paribas was seen readying its fourth balance-sheet driven deal. The E3.25 billion transaction will be the first European amortizing synthetic CLO, sources said. Launch is expected in early March.

The deal will be structured into five, 4.9-year classes: 35% of the notes will amortize in three years, while next 35% will amortize in five years, and the rest at maturity, 2008.

The transaction is backed by a diverse portfolio of loans with exposure to15 European countries, and 160 obligors.

Lastly, UBS Warburg began marketing a $2 billion synthetic CDO called North Street. The deal is backed 30% by ABS. Moody's in the only the rating agency on the deal, which has a 10.5 rating factor. The lowest rated bond that can be added to the dynamic pool is Aa3.

A $1.84 billion super senior tranche, making up 92% of the deal, is being sold into a commercial paper conduit, sources said. North Street is offering a $100 million class with a Aa2 rating, talked at 80 basis points over the three-month Libor, and a $60 million trust certificate class, with a Baa1 rating, talked at 250 over the three-month Libor.

On the CBO front, Bain Capital Inc. is putting together a high-yield CDO called Sanktaty. Bain was marketing equity last week with a internal rate of return at 17% to 20%, market sources said.

Bain Capital's Sankaty Advisors unit, which focuses on high-yield, has about $3 billion under management.

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