Standard & Poor's took a sledgehammer to Wellington Asset Management's Juniper 2000-1 arbitrage cashflow high yield CBO last Monday. The 2000 vintage issue had its A-3 and A3-L classes dropped to BBB' from AAA/Watch Negative'. The A4-L also had a dramatic drop to CCC' from A-/Watch Negative'.

Sources familiar with the situation said telecom defaults, credit migration and heavy par erosion were the cause of the severe downgrades.

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