Lehman Brothers appears on track for the top rungs of the CDO league tables this month, with three deals totaling about $1.2 billion.

First up is Madison Avenue Structured Finance CDO I for Met Life, which is a $301 million arbitrage, cashflow, multi-sector/ABS CDO. This deal will have a 25% bucket for CDOs and could be seen at either side of 45 basis points over Libor on the triple-As, according to buyside sources. Pricing could be seen during the week of September 17th.

Also on the block is Teachers Insurance's first high yield CBO for $300 million, which is expected to begin marketing after Met Life is priced.

GSC Partners (GSC CDO Fund III) has a $600 million-area 100% high yield CBO backed by B3/B-' credits with Lehman slated for late September. FSA will provide a surety bond on the triple-A notes. Since GSC plays with B3' credits, there should be a large amount of excess spread to entice equity investors. GSC CDO II closed in March via First Union Securities and Salomon Smith Barney. GSCP was founded in 1994 and the firm's 19 investment professionals manage several private equity, mezzanine and distressed debt funds.

Investors say Lehman's strategy is to finish marketing these three deals and possibly one more by November-end to avoid any kind of spread blowout seen in 2000.

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