MUFG joint venture stops selling structured loans after scrutiny

The structured loans sales halted by Mitsubishi UFJ Morgan Stanley Securities mark an abrupt halt in a booming market after regional banks raised concerns over the products' risks. The joint venture said buyers lack transparency in valuing these loans, potentially misleading lenders about their growth, prompting the decision to stop selling them. Meanwhile, Japan's financial regulator is intensifying scrutiny of high-yield structured loans backed by government bonds and other assets, with regulators warning lenders could face significant losses if rates turn unfavorable.