Constellation Financial Management has its second deal of the year in the market, a $290 million area Aa2/AA (Moody's/Fitch) floating rate privately placed securitization of 12b-1 mutual fund fees via Bear Stearns. The deal is indexed over three-month Libor.

Bear is also the warehousing agent for the transaction, sources said. Differing from 12b-1 fee deals that have seen ratings volatility, Constellation has added a new put option hedge feature that ties the deal's performance to equity market indices such as the S&P 500, which acts as added credit enhancement.

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