After a steady stream of domestic deals since June, asset-backed issuers in Japan are again starting to look for funding in the Euromarket. "The competitiveness of the Euromarket is returning now. The spreads at which [Japan asset-backeds] have demand in the Euromarket are looking competitive again against the domestic market," commented one banker in Tokyo.

European investors quickly snapped up two auto loan-backed deals from repeat issuers. The larger of these came from Orient Corp. (Orico), one of Japan's biggest consumer credit companies and most active ABS originators. The 36 billion ($338 million) equivalent, 1.5 year average-life issue from Oscar Funding Corp. V comprised a $200 million tranche priced at 29 basis points over one-month US$ Libor, and a E130 million tranche priced at 29 basis points over one-month Euribor. DKB International arranged the transaction, which was rated triple-A by Standard & Poor's and Moody's.

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