Japan's Daiwa Bank recently came to market with its first residential mortgage-backed transaction. Called Maison Capital Corp., the 28.97 billion ($260 million) transaction securitizes a portfolio of mortgages originated by the bank with a residual value of 30.2 billion. Daiwa brought in Nomura Securities to arrange the deal.
The reference pool includes two different types of home loans: normal home loans and refinance loans, where obligors choose to borrow from cheaper private lending institutions than are available from the state housing agencies. The latter make up almost 94% of the total. The weighted average loan-to-value of the 2907 mortgages included is 53.7% - low for a deal of this kind - with seasoning a fraction over 23 months. The majority of loans were originated in the last two years.