Legislation intended to give new life to the French mortgage bond market was passed by the country's parliament in mid-June, and the new system is expected to be up and running by the fall. However, securitization experts do not expect it to have much impact on mortgage-backed securitization volumes in the short term.

The legislation enables French financial institutions to establish companies called Societes de Credit Foncier, which will issue mortgage bonds, called Obligation Fonciers, similar to German pfandbriefe.

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