While securitization pros elsewhere were lazing about on the beach, Japanese securitizers were busier than ever. The domestic market absorbed three of the largest deals yet seen, with no evidence that investors were filling up. Indeed, syndicate officials said demand was strong, despite the glut, as investors have little alternative to securitized paper.
The biggest of the three and the country's largest ever rated securitization, was a 208.1 billion ($1.97 billion) transaction from Dai-Ichi Mutual Life Insurance Co., Japan's second largest life insurer. The deal - called Mortgage Income Certificate (or Magic) - parcels Dai-Ichi Life's entire residential mortgage portfolio and was sold by IBJ Securities.