Morgan Stanley Dean Witter has started marketing a domestic residential mortgage securitization for Mitsubishi Trust & Banking, in a deal that the U.S. bank hopes will prove its credentials to the Government Housing Loan Corp., Japan's state-owned mortgage lender, which is close to selecting an arranger for its inaugural mortgage deal.

The Mitsubishi deal, which will be worth 33 billion ($304 million) and come via a Cayman Island SPC called MTBC Housing Loan Corp., is expected to close in the last week of May. The senior tranche will be worth 30 billion and is expected to be rated triple-A. There will also be two junior pieces each worth 1.5 billion, which should receive ratings of double-A/single-A and triple-B. According to the deal's registration with the Ministry of Finance, it will be rated by Standard & Poor's, Moody's Investors Service and Japan Credit Rating.

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