Late-July and early-August was a busy time in Japan's domestic securitization market, as originators positioned themselves for the fiscal half year-end in September, and investors digested deals backed by a variety of assets without showing much sign of being sated.

Japanese securitization pros said that some investors were slightly nervous thanks to the prospect of the Bank of Japan's ending its zero interest policy, but that this was not enough to stop them buying. Nervous or not, pros pointed out, investors have few alternatives if they need to buy highly rated assets. Also, asset backeds have more pulling power than straight bonds when investors are also worrying about corporate credit quality in light of Seiyo Corp.'s filing for liquidation.

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