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  • The Japan Bank for International Co-operation (JBIC) has been both aggressive and innovative in its international borrowings this year. In its earlier guise as the former Export-Import Bank of Japan (Jexim) it reopened the international markets for Japan's government guaranteed issuers (JGGIs) in early February with an innovative $1bn five year floating rate note.
  • Euroweek last interviewed Yoichiro Yokoyama in July 1998 when he was director of the treasury department at the former Japan Development Bank (JDB). At that time the yen was trading at ¥145/$, confidence in the Japanese economy at home and abroad was sinking to a recent history low and adverse sentiment towards Japanese issuers in the international capital markets was growing apace.
  • At long last, Japanese equities appear to broken out of their 10 year bear market. Corporate restructuring, burgeoning investor liquidity - particularly in the all-important retail sector - and a dramatic return by foreign investors at the start of this year have all combined to sent shares soaring again.
  • Tokyo Electric Power Company (Tepco) became the first Japanese corporate issuer to tap the single European currency market when it raised Eu750m in early March with a five year fixed rate offering lead managed by IBJ, Paribas and WestLB (which led the company's first Deutschmark issue in 1969).
  • The Japanese securitisation market has offered little but disappointment to foreign deal engineers this year. While 1998 was a boom year for international issuance and Japan promised even greater rewards in 1999, the reality has been very different.
  • Activity in Japan's long dormant Samurai domestic bond sector is starting to liven up again. Domestic investors are increasingly keen to find alternative investments at a time of paltry returns on traditional products and are increasingly willing to move down the credit scale.
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  • Almost all the predictions made last year for Japan's domestic corporate bond market in 1999 have been stood on their head. Last year, as the credit crunch worsened, as investors shied away from credit risk and as corporate bond spreads rose steadily, bankers in Tokyo were predicting another boom year for a market which had almost doubled in size from 1997.
  • Weather derivatives markets have traditionally been characterized as having a small number of participants and large bid-ask spreads, but this is rapidly changing.
  • The list of actual contracts in use is extensive and constantly evolving.
  • Japan's largest consumer finance company, Nippon Shinpan Co, issued its third securitisation of shopping loans this week with a ¥20bn deal privately placed by Greenwich NatWest - the first time the UK/US house has lead managed a securitisation of Japanese domestic assets. Nippon Shinpan has been a pioneer of structured finance in Japan - its ¥15bn J-Cars Corp deal, backed by auto loans and lead managed by Goldman Sachs, effectively opened the term ABS market in 1994.
  • Korea Tobacco & Ginseng's $790m privatisation became the latest deal to fall prey to investor apathy toward Asia when bookrunners Credit Suisse First Boston, Dongwon Securities Hyundai Securities and Warburg Dillon Read were forced to pull the deal just one day from pricing, due today (Friday). Continuing investor resistance to Asian stocks, combined with funds shutting their books in advance of potential Y2K problems, means the year will end on a low note.