In what promises to be a significant boost for Japan's fledgling mortgage-backed market, the country's biggest mortgage originator announced its intention to issue its first securitization.

The Government Housing Loan Corporation (GHLC) plans to issue between 30-50 billion ($285-475 million) of mortgage-backed bonds before the end of March 2001, according to a draft plan released by the Ministry of Construction, which oversees the GHLC. The plan calls for the GHLC to transfer mortgages to a trust bank, which will issue bonds backed by payments on the mortgages for sale to institutional investors.

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