While there is still a degree of uncertainty as to what the final proposal for the new Basel Accord will look like, some issuers - rather than stepping on the sidelines until those changes are made apparent - are instead opting to retain a measure of flexibility via an optional redemption step-up date.

Case in point: Halifax's first master trust structure, which issued a GBP23 billion RMBS transaction - to date the largest seen in the European securitization market. "Like other issuers, Halifax will review the situation and will determine if securitization makes sense from a diversification of funding point of view," said one market source. "The point is, Halifax has done a master trust before, and that means that they intend to issue more going forward; otherwise, what is the point of doing a master trust?"

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