Japan's first non-performing loan-backed securitization is set for launch before the end of November, said sources in Tokyo. (ASRI 11/1/99, p.1).

Morgan Stanley Dean Witter is now marketing the 22.8 billion ($217 million) issue to investors in Japan and the Euromarket. A Cayman Islands SPC called International Credit Recovery-Japan One Ltd. will issue four classes of floating-rate notes, which are ultimately backed by a pool of non-performing loans collateralized by real estate purchased from Japanese financial institutions at a heavy discount by Morgan Stanley Real Estate Fund. Morgan Stanley will keep a 1.8 billion equity piece.

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