Despite “Abenomics,” the pro-growth policies of the Prime Minister, Shinzo Abe, focused on pulling the Japanese economy out of deflation, which incorporated the perspective of pulling up interest rates on bank loans, the Japanese economy, and more importantly, the Japanese securitisation market, is still strongly affected by the low interest rate market environment. Notwithstanding the credit investors’ appetite for alternative investments, which tend to bear higher interest rates, due to enterprises’ lack of incentive to look to alternative sources of financing, there has been very little development in the Japanese securitisation market. This does not seem to be the product of a lack of confidence in securitisation products, as, in recent years, impairment of securitisation products happened only once in 2014; and this sole exception was an agreed-upon standstill for a relatively short period of time, in terms of a mezzanine tranche.
