The recent tripping of an early amortization trigger ("early-am") for NationsBank CLO Commercial Loan Master Trust had some investors questioning why they were not made aware of the situation prior to purchasing the notes, sources said.

The deal, NBCLT 1997-2, was a landmark securitization when it priced. According to market sources, the collateral, described as "sterling," had seen little deterioration of credit but failed diversity-score requirements unique to the transaction. This, in turn, triggered a payout six months earlier than expected.

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