SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) December 8, 1998
CHASE FUNDING, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 333-64131 13-3840732
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) ID Number)
343 THORNALL STREET, EDISON, NEW JERSEY 08837
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number,
including area code: (732) 205-0600
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. OTHER EVENTS
FILING OF COMPUTATIONAL MATERIALS AND CONSENT OF INDEPENDENT ACCOUNTANTS.
This Current Report on Form 8-K is being filed to file a copy of
Computational Materials (as defined below) prepared by Chase Securities Inc., as
an underwriter, in connection with the issuance of Chase Funding Mortgage Loan
Asset-Backed Certificates, Series 1998-2. The term "Computational Materials"
shall have the meaning given in the No-Action Letter of May 20, 1994 issued by
the Securities and Exchange Commission (the "SEC") to Kidder, Peabody Acceptance
Corporation I, Kidder, Peabody & Co. Incorporated and Kidder Structured Asset
Corporation, as made applicable to other issuers and underwriters by the
Commission in response to the request of the Public Securities Association dated
May 24, 1994, and the supplemented in the No-Action Letter of February 17, 1995
issued by the SEC to the Public Securities Association.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99.1 Computational Materials of Chase Securities Inc.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHASE FUNDING, INC.
By: /S/ EILEEN LINDBLOM
--------------------------
Name: Eileen Lindblom
Title: Vice President
Dated: December 8, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT PAGE
99.01 Computational Materials of Chase Securities Inc.
EXHIBIT 99.1
CHASE FUNDING MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 1998-2
$575,000,000 (APPROXIMATE)
Subject to Revision
December 3, 1998 - Preliminary Marketing Materials
The analysis in this report is based on information provided by the Seller.
Chase Securities Inc. ("CSI") makes no representations as to the accuracy or
completeness of the information contained herein. The information contained
herein is qualified in its entirety by the information in the Prospectus and
Prospectus Supplement for this transaction. The information contained herein is
preliminary as of the date hereof, supersedes any previous information delivered
to you by CSI and will be superseded by the applicable final Prospectus and
Prospectus Supplement and any other information subsequently filed with the
Securities and Exchange Commission. These materials are subject to change,
completion, or amendment from time to time without notice, and CSI is under no
obligation to keep you advised of such changes. These materials are not intended
as an offer or solicitation with respect to the purchase or sale of any
security. Any investment decision with respect to the securities should be made
by you based upon the information contained in the final Prospectus Supplement
and Prospectus relating to the securities. You should consult your own counsel,
accountant, and other advisors as to the legal, tax, business, financial and
related aspects of a purchase of these securities.
The attached information contains certain tables and other statistical analyses
(the "Computational Materials") which have been prepared by CSI in reliance upon
information furnished by the Seller. They may not be provided to any third party
other than the addressee's legal, tax, financial and/or accounting advisors for
the purposes of evaluating said material. Numerous assumptions were used in
preparing the Computational Materials which may or may not be reflected therein.
As such, no assurance can be given as to the Computational Materials' accuracy,
appropriateness or completeness in any particular context; nor as to whether the
Computational Materials and/or the assumptions upon which they are based reflect
present market conditions or future market performance. These Computational
Materials should not be construed as either projections or predictions or as
legal, tax, financial or accounting advice. Any weighted average lives, yields
and principal payment periods shown in the Computational Materials are based on
prepayment assumptions, and changes in such prepayment assumptions may
dramatically affect such weighted average lives, yields and principal payment
periods. In addition, it is possible that prepayments on the underlying assets
will occur at rates slower or faster than the rates shown in the attached
Computational Materials. Furthermore, unless otherwise provided, the
Computational Materials assume no losses on the underlying assets and no
interest shortfalls. The specific characteristics of the securities may differ
from those shown in the Computational Materials due to differences between the
actual underlying assets and the hypothetical underlying assets used in
preparing the Computational Materials. The principal amount and designation of
any security described in the Computational Materials are subject to change
prior to issuance. Neither CSI nor any of its affiliates makes any
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities.
THIS INFORMATION IS FURINISHED TO YOU SOLELY BY CSI AND NOT BY THE ISSUER OF THE
SECURITIES OR ANY OF ITS AFFILIATES (OTHER THAN CSI). CSI IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR CHASE SECURITIES INCORPORATED SALES
REPRESENTATIVE IMMEDIATELY.
<PAGE>
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 1998-2 Class AV-1
Discount Margin Table
Settlement Date 18-Dec-98 Certificate Face Amount $288,750,000
First Reset Date 18-Dec-98 Certificate Factor 1.000000
Next Payment Date 25-Jan-99 Index 1M LIBOR
Accrued Interest Date 18-Dec-98 Assumed Index Yield 5.62375%
Interest Accrual Days Act/360 Coupon Spread to Index 0.52%
Accrued Interest Days 0 Assumed Coupon 6.14375%
27.00% 5.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Price 32nds CPR CPR CPR CPR CPR CPR CPR
99.750000 24 0.618% 0.549% 0.560% 0.591% 0.631% 0.685% 0.767%
99.765625 24+ 0.612% 0.547% 0.558% 0.587% 0.624% 0.675% 0.752%
99.781250 25 0.606% 0.545% 0.555% 0.582% 0.617% 0.665% 0.736%
9.796875 25+ 0.600% 0.543% 0.553% 0.578% 0.610% 0.654% 0.721%
99.812500 26 0.593% 0.541% 0.550% 0.573% 0.603% 0.644% 0.705%
99.828125 26+ 0.587% 0.540% 0.548% 0.569% 0.596% 0.634% 0.690%
99.843750 27 0.581% 0.538% 0.545% 0.564% 0.590% 0.623% 0.674%
99.859375 27+ 0.575% 0.536% 0.543% 0.560% 0.583% 0.613% 0.659%
99.875000 28 0.569% 0.534% 0.540% 0.556% 0.576% 0.603% 0.643%
99.890625 28+ 0.563% 0.533% 0.538% 0.551% 0.569% 0.592% 0.628%
99.906250 29 0.557% 0.531% 0.535% 0.547% 0.562% 0.582% 0.612%
99.921875 29+ 0.551% 0.529% 0.533% 0.542% 0.555% 0.572% 0.597%
99.937500 30 0.544% 0.527% 0.530% 0.538% 0.548% 0.561% 0.582%
99.953125 30+ 0.538% 0.525% 0.528% 0.533% 0.541% 0.551% 0.566%
99.968750 31 0.532% 0.524% 0.525% 0.529% 0.534% 0.541% 0.551%
99.984375 31+ 0.526% 0.522% 0.523% 0.524% 0.527% 0.530% 0.535%
100.000000 0 0.520% 0.520% 0.520% 0.520% 0.520% 0.520% 0.520%
100.015625 0+ 0.514% 0.518% 0.517% 0.516% 0.513% 0.510% 0.505%
100.031250 1 0.508% 0.516% 0.515% 0.511% 0.506% 0.499% 0.489%
100.046875 1+ 0.502% 0.515% 0.512% 0.507% 0.499% 0.489% 0.474%
100.062500 2 0.496% 0.513% 0.510% 0.502% 0.492% 0.479% 0.458%
100.078125 2+ 0.489% 0.511% 0.507% 0.498% 0.485% 0.468% 0.443%
100.093750 3 0.483% 0.509% 0.505% 0.493% 0.478% 0.458% 0.428%
100.109375 3+ 0.477% 0.508% 0.502% 0.489% 0.471% 0.448% 0.412%
100.125000 4 0.471% 0.506% 0.500% 0.485% 0.465% 0.438% 0.397%
100.140625 4+ 0.465% 0.504% 0.497% 0.480% 0.458% 0.427% 0.382%
100.156250 5 0.459% 0.502% 0.495% 0.476% 0.451% 0.417% 0.366%
100.171875 5+ 0.453% 0.500% 0.492% 0.471% 0.444% 0.407% 0.351%
100.187500 6 0.447% 0.499% 0.490% 0.467% 0.437% 0.397% 0.336%
100.203125 6+ 0.441% 0.497% 0.487% 0.462% 0.430% 0.386% 0.320%
100.218750 7 0.435% 0.495% 0.485% 0.458% 0.423% 0.376% 0.305%
100.234375 7+ 0.428% 0.493% 0.482% 0.454% 0.416% 0.366% 0.290%
Weighted Average
Life 2.940 14.454 8.859 4.281 2.547 1.647 1.069
First Principal
Payment 0.103 0.103 0.103 0.103 0.103 0.103 0.103
Expected Final
Maturity 7.186 25.686 18.853 10.019 6.353 4.519 3.353
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR CHASE SECURITIES INCORPORATED SALES
REPRESENTATIVE IMMEDIATELY.
