Shinsei Securities Co. Ltd is setting new disclosure standards for the Japanese market with its 1.437 trillion (U.S. $11.8 billion) collateralized loan obligation (CLO), which is expected to close next month. Not only is this deal said to go further than any other in Japan's market history in regard to the level of disclosure, but it is also the first public CLO to employ the recently established idea of a master trust.
Shinsei Funding One Special Purpose Co. features a master trust, Shinsei Bank Master Trust, which was established under the securitization laws of Japan. The issuer for the master trust is a Japanese version of a special-purpose corporation, called a TMK. The collateral pool will include approximately 2,304 loans to 613 borrowers.