Demand for back-up servicing is growing in Japan, as increasingly sophisticated investors absorb the lessons of the Japan Leasing Corporation's (JLC) collapse and begin to realize the importance of having a back-up servicer in place in case a deal hits trouble, according to market experts in Tokyo.

That demand means new business opportunities for back-up servicers, a fact reflected in several new ventures. Most recently, Orient Corporation (Orico), a leading consumer credit company and Japan's biggest non-bank ABS issuer, announced a tie-up between its servicing subsidiary and Dai-Ichi Kangyo Fuji Trust & Banking Co. to form a comprehensive back-up servicing company that will collect on both performing and non-performing assets.

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