Bangkok--7 Sep--Moody's Investors Moody's Investors Service says that domestic issuance of structured finance transactions in India grew 90% to USD5.5 billion in 1H07 from USD2.9 billion in 1H06. Deal numbers almost doubled as well. "This vigor confirmed the market has recovered the fast pace observed since 2000," says Dominique Gribot-Carroz, a Moody's AVP in Hong Kong and the author of a new report jointly written with Moody's affiliate in India -- ICRA --, which reviews the market for 1H07 and examines the outlook for 2H07. "With the retail lending business in India likely to grow, although possibly at a slower rate, we expect ABS issuance to increase in 2H07," says Gribot-Carroz, adding, "Banks, especially those active in the retail finance business, are likely to face capital constraints." In 1H07, ABS issuance grew more than 90% compared to 1H06. ABS accounted for 64% of the issuance in 1H07, thus remaining the largest product class. Issuance volume was also propped up by the securitization of single corporate loans, which accounted for 29% of issuance in 1H07. Only 3 RMBS transactions closed in 1H07 and accounted for 7% of issuance. While RMBS has a huge potential—given the significant expansion in the underlying housing finance business—the long tenure of such paper together with the lack of secondary market liquidity deters certain investors. The India report is being released in conjunction with a similar structured finance report for Korea, a combined report for China, Hong Kong and Taiwan, another combined report for Singapore, Malaysia,Thailand and Indonesia, a report summarizing developments in the entire region, and another on regional derivatives.