Sanwa Bank is scheduled to close Japan's first securitization of mortgage loans by the end of the month, a deal that could prime the pump for an active Japanese mortgage-backed securities market.

The deal is two-and-a-half times oversubscribed, said Jill M. Zelter, a managing director for Fitch IBCA. If this deal goes smoothly, she said, she expects the Japanese market to yield several billion dollars of mortgage- backed securities issuance this year.

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