Bear Stearns is marketing the triple-As on Tropic Trust Preferred CDO I in the 95 basis point area over three-month Libor (A/L 13.3y), and the class is reportedly subject.
The Class B A3/NR/A- (MDY/S&P/FTC) notes on the bank's $307 million inaugural static pool TRUPS CDO are talked at 210 area over three-month Libor with a 30-year average life.
Investors report that the default rate in TRUPS CDOs is about 0.40% per annum with a 10% recovery rate, since the securities are unsecured and subordinate.
Meanwhile, First Tennessee and Keefe Bruyette Woods' $500 million Preferred Term Securities VI issue is said be to be finding good demand partly due to the marketing of a relatively short average life of nine years with an expected maturity of 10 years.
Salomon Smith Barney and Sandler O'Neil are said to be pricing the $520 million MM Community Funding IV Trups CDO in the coming weeks as well. No issuers or syndicate desks could be reached for comment.