While Japan faced a local currency sovereign downgrade from Moody's Investors Service last month to Aa3' from Aa2,' the asset-backed market seems to be pushing ahead without any constraints.
Adding a bit of variety to the market, consumer credit firm, Jaccs Co., launched a 6.25 billion ($46.8 million) auto-loan deal last week. Mitsubishi Trust and Banking Corp. led the deal and the transaction benefits from overcollateralization in the form of a cash reserve. Rating and Investment Information, Inc. (R&I) has provided a preliminary triple-A rating to the deal. Mitsubishi Trust will issue trust certificates backed by the transferred auto-loan claims, divided into senior and subordinated trust certificates. After an additional transfer to form a cash reserve, the senior trust certificates are sold to investors via Tokyo-Mitsubishi Securities Co., Ltd.