Japanese banks are set to turn to retail investors to sell up-coming securitizations, in recognition of the fact that it is not only institutions that are starved of higher yielding securities in Japan's low interest rate environment.

Asahi Bank, for instance, has announced plans to securitize its mortgage portfolio and from the beginning of the next financial year it will be offering the resulting bonds in units of 10 million ($93,000), with the aim of tapping wealthy retail investors. The bank estimates that the bonds will pay a coupon of 30 to 40 basis points over 10-year government bonds for maturities of five to 10 years.

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