The bank's London branch will stop creating the mortgage-backed products entirely, a spokesman has announced - a process which is anticipated to result in job cuts.
Mizuho has lost a total of $5.5 billion on the securities since the onset of the credit crunch last year.
It is understood that the majority of these write-downs were related to the now-collapsed US sub-prime market.
A full-year profits decline of 50 per cent was also registered, with net income falling to just $3 billion for 2007.
"We have to dismiss the team that creates securitization productsâ¦under these market conditions, we won't be able to continue the business," spokesman Toshimitsu Okano said.
The bank released a forecast earlier this week that predicted a rise of inflation in Japan higher than at any time for a decade, Bloomberg reports.
"We can't expect consumption and business investment [in Japan] to give much thrust to economic growth," Mizuho's chief market economist Yasunari Ueno commented.