Not long ago, asset-backed securitization was expected to play a major role in Asia's recovery by helping domestic issuers tap overseas funding for recapitalization and restructuring. But outside Japan, Australia and Hong Kong, highly liquid domestic markets, a dwindling number of potential issuers, and foreign investors still wary of Asian risk have dimmed the prospects for global ABS issuance from the region.

Still, market players throughout Asia are eager to use securitization, and have applied many of the same techniques used in securitization to structure transactions. The result has been a rise in quasi-ABS deals in South Korea and Singapore, in particular usually involving a well-known domestic originator, local currency-denominated assets, and placement into the domestic market.

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