Japanese consumer finance company Sanwa has priced and closed its inaugural asset-backed security issue, but only after dropping an intended Euro tranche and postponing the deal's closing for one to two weeks.

"The main challenge was the reaction of some investors to a Japanese risk," explains Iain Barbour at Commerzbank in London. "There were a core group of investors who did not want Japanese risk. But their issue is with the current economic situation in Japan, rather than with Japanese consumer finance assets, or Japanese structured issues."

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