Domestic issuance continues to be the preferred route for most asset-backed issuers in Japan, where all ABS issues launched in the past several weeks were aimed at domestic investors.

Japan's near-zero interest rates, combined with a high level of domestic liquidity after the government injected 7.45 trillion ($70 billion) in public funds into the banking system in March, have left domestic investors starved for yield, said sources in Tokyo. And since asset-backeds offer a slight premium over other fixed-income instruments, investors have quickly snapped them up.

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