Although the 13 banks participating in the German true sale initiative completed the groundwork on their securitization platform last month, a sluggish economy is likely to keep those banks from needing to securitize until next year, several market observers said.

In the meantime, some key changes to Germany's Insolvency Code and Banking Act are nearing approval. The changes - which will facilitate securitization for mortgages in particular - are spelled out in current draft legislation. The issue will go to the Parliament after the comment period on the draft legislation ends in several weeks.

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