The International Swaps and Derivatives Association is looking at producing standard documentation and definitions for credit-default swaps referenced to asset-backed securities in Japan. "This will be a focus of the upcoming meeting," said Nobukazu Saeki, co-chair of the credit committee and chief manager of the credit trading department at Mitsubishi Securities in Tokyo.
The issue will be discussed at ISDA's Japanese credit committee meeting early this month. Standardization will further boost ABS CDOs in Japan, which have recently gained traction in the market as an alternative to traditional synthetic collateralized debt obligations, noted Saeki. ISDA expects similar definitions for Europe and the U.S. to be finalized by December (DW, 9/24).
