According to a report released by Standard and Poor's last week, the securitization market in Japan may grow by as much as 40%, to 5 trillion this year from 3.2 trillion last year.
In part, S&P expects that the market will pick up as a result of increased regulatory pressures, which force banks to reduce their balance sheet risks. According to some market sources, deals that came to market last year, such as Shinsei Funding and Aiful, may have established a new securitization landscape for this year. The 1.437 trillion Shinsei deal, led by Nikko Salomon Smith Barney of Tokyo, (see ASR 11/26/01) was the first deal to go further than any other in Japan's market history with regard to the level of disclosure. Additionally, it was the first public CLO to employ the recently established idea of a master trust.