NationsBank Corp. and Swiss Bank Corp. are expected to bring a total of more than $5 billion in collateralized loan and bond obligations to market this week.

Although several European banks have issued such asset-backed securities, NationsBank's $4 billion of collateralized loan obligation would be the first large issue of its kind by a U.S.-based bank.

The largest offering to date is the $5 billion R.O.S.E. Funding issued in January by London-based Natwest Group PLC.

Several other collateralized loan and bond obligations are expected this month from banks, as they seek to remove the loans from their balance sheets and free up capital by the end of the this quarter.

"Typically the summer is a little slow," said Robert J. Grossman, executive vice president in the loan products group of Fitch Investors Service LP.

But now "you'll see a pretty active pipeline, particularly since this is September and it's quarter-end, so for anyone who has a balance sheet motivation for doing one of these transactions, Sept. 30 is usually a motivater," he said. He declined to comment on specific securities.

The NationsBank deal, to be named NationsBank Commercial Loan Master Trust 1997, is expected to total about $4 billion and will consist of more than 1,000 of the bank's investment-grade commercial and corporate loans split into three tranches with a fourth, unrated tranche consisting of equity, according to a source involved in the deal. At press time, the deal was not expected to launch today.

Although final ratings on the issue have not been set, the seniormost tranche is expected to carry a rating of AAA from Fitch, two notches higher than the agency's A-plus rating on NationsBank's senior debt. Fitch, however, would not confirm the tranche's expected rating. NationsBank is looking to sell the new securities to a broad investor base and has already been marketing it in Europe and began doing so in the United States this week, according to the source.

Meanwhile Swiss Bank Corp. announced the global launch of a $1.5 billion bond issue Monday led by its investment banking division, SBC Warburg Dillon Read.

The structure allows Swiss Bank to securitize portions of its credit risk exposure while managing its exposure by adjusting the pool of credit- linked notes that collateralize the bonds.

Aeltus Investment Management Inc., a division of Hartford, Conn.-based insurer Aetna Inc., announced the closing of its $307.5 million Aeltus CBO II Ltd.

The collateralized bond obligation, underwritten by Morgan Stanley Dean Witter, will consist of about 70% high-yield bonds and 30% emerging-markets debt, mostly from Latin America, according to an Aeltus executive who worked on the deal. Aeltus will act as collateral manager for the deal.

Aeltus completed its first collateralized bond obligation, the $200.5 million Aeltus CBO I Ltd., in December.

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