Morgan Stanley has been awarded Thomson DealWatch's "Real Estate-Backed Securities Deal of the Year 2000"¹ for its second non-performing real estate securitization transaction in Japan, International Credit Recovery Japan II Ltd. (ICRJ II). The JPY31 billion deal issued in August 2000 involved the securitization of sub and non-performing mortgage loans and real estate properties. ICRJ II followed the success of JPY21 billion ICRJ I issued in November 1999, the first non-performing loan/real estate secured transaction ever in Japan.

The issue was structured into four classes of debt rated AAA down to BBB by three rating agencies. The transaction was well received by investors in each class. The Euro/144A issue was placed with a range of investors in Japan, U.S. and Europe.

Following the success of ICRJ II, the Japan securitization team closed in May 2001 the largest non-performing real estate securitization yet, ICRJ III. To date, Morgan Stanley remains the only house to have successfully completed the securitization of non-performing real estate assets in Japan.

¹ Thomson DealWatch is a screen service provided by The Thomson Corporation, which publishes International Financing Review (IFR).