Following a stellar 2005, the Malaysian ABS market looks set to carry the momentum into 2006 with synthetic structures due to be introduced soon. At least two transactions backed by loans to small and medium-sized enterprises are due for synthetic treatment, possibly in the first quarter of this year.

Cagamas, the state-owned secondary mortgage company and Malaysia's benchmark mortgage-backed issuer, is in charge of the project. The program is part of a wider government initiative to help SMEs access funding on more favorable terms than available through commercial bank loans.

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