Working Capital Management Co., a fully supported asset-backed commercial paper conduit sponsored by Mizuho Corporate Bank, raised its purchase limit to $5 billion, from $3 billion. While it is not expected to substantially impact the ABCP sector, market sources familiar with the situation say that it represents the bank's more aggressive, albeit measured, commitment to acquiring for its securitization platform.
Mizuho Corporate Bank, the corporate banking arm of Mizuho Financial Corp., was created in April 2002 after Dai-Ichi Kangyo Bank and Fuji Bank's corporate banking divisions were consolidated to the Industrial Bank of Japan. The new entity inherited a substantial amount of non-performing loan assets from its predecessors, a carry over from the days of permissive lending practices across the Japanese banking industry in the 1990s. During the first few years of its life, however, Mizuho steadily whittled away at its non-performing loans (NPL), reducing holdings to about 1.4% by the end of March 2006, according to press reports.