Nomura Taps Cheap Source of Funding.

Employing a low-cost financing strategy that could become popular among issuer s of commercial MBS, Nomura Asset Capital has quietly started funding some of its mortgage originations through a commercial-paper program. Commercial paper is already a major source of funding for holders of other typ es of loans, with more than $200 billion of asset-backed commercial paper now out standing. But while few mortgage originators have embraced the tactic so far, that seems likely to change. Many of the same benefits reaped by asset-backed issuers can a lso be achieved by commercial re