A pair of Japan's most frequent issuers launched transactions in the past week. Credia, a consumer finance company with assets of 121.6 billion ($1.1 billion), launched a 10 billion unsecured consumer loan ABS via the CABS Limited Series 2005 master trust vehicle, while UFJ Bank will issue a 100 billion RMBS through the UHL2005 trust.

Credia's deal, backed by a pool of 31,694 loans totaling roughly 16.1 billion, is being arranged by The Royal Bank of Scotland. The transaction features 8.7 billion of senior floating-rate notes, rated Aa2' by Moody's Investor's Service, and 1.3 billion of Baa2' rated subordinated paper.

Both tranches have seven year expected maturities, involving a three-year revolving period followed by a four-year controlled amortization. Credit enhancement for the senior tranches comes primarily through 19.1% subordination, plus a dynamic reserve account and excess spread.

In Japan's ultra-secretive market, price guidance has not been made available. However, in secondary market activity, double-A rated three-year subprime consumer loan ABS currently trades in the 100 basis point area over Libor.

UFJ's transaction, arranged by UFJ Tsubasa Securities, is backed by 6,424 first-lien mortgages with an outstanding balance of 112.9 billion and a 79.3% weighted average LTV and 4.5-years of seasoning.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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