Bangkok--4 Sep--Moody's Moody's Investors Service is cautious on the prospects for the structured finance markets in Asia ex-Japan in 2H2008, while moderate growth was recorded in 1H2008. "The market for Asian structured finance is likely to remain cautious in the second part of the year, as originators continue to wait for better market conditions," Moody's says in a report, entitled 2008 First Half Review and Second Half Outlook. "Most activity will likely take place in Korea and India, and in addition to the traditional RMBS, auto loan and credit card receivables backed transactions, new asset classes may emerge in Korea, while interest in covered bonds has also been growing," says Dominique Gribot-Carroz, a Moody's Business Development executive and the report's author. The report also received contributions from Moody's affiliates in Asia: China Chengxin Int'l Credit Rating Co., Ltd, Korea Investors Service and ICRA Ltd in India. "If market conditions improve in 2H2008, we may see SME loan securitizations in China, a RMBS transaction in Indonesia, as well as the resumption of real estate securitizations in Singapore; and in the regional derivatives market, we expect new balance-sheet transactions with significant Asian exposure," the report says. During 1H2008, regional issuance -- exclusive of derivatives transactions-- increased to USD29.3 billion from USD27.9 billion, the report says. "The rise was primarily driven by markets in South Korea, India and China, but other jurisdictions -- Taiwan, Singapore, Hong Kong, Thailand and Indonesia -- were quiet," says Gribot-Carroz. "Cross-border issuance -- excluding regional derivatives transactions -- totaled USD2.8 billion and accounted for 9.7% of 1H2008 cross-border and domestic issuance," says Gribot-Carroz. All the cross-border transactions closed in Korea. "At the same time, the regional derivatives market was quiet, except for balance-sheet transactions, while repackaged deals were done mostly privately," says Gribot-Carroz. The report is entitled "Asian Structured Finance: Moderate Growth in the First Half Despite Slowdown in Southeast Asia; Market Prospects Still Cautious," and can be accessed at www.moodys.com