Morgan Stanley Dean Witter (MSDW) launched the first public securitisation of bad debt in Japan with a 21bn yen ($200m) sale.
The sale comprised bonds backed by non-performing and sub-performing loans and real estate through International Credit Recovery – Japan One, MSDW’s newly launched vehicle.
MSDW’s Steven White said: “This is a completely new market for Japan that provides an alternative way of funding or working out distressed real estate”.
According to US bond insurer MBIA-AMBAC, the Japanese securitisation market is expected to grow by 40% a year. Since their peak in 1991, Japanese real estate prices have fallen by 75%.
EGi News 24/11/99
