Using the German pfandbriefe market as an analogy, analysts are predicting that the takeoff of the new Irish covered bond market will have minimal effect on the level of RMBS securitizations from that country, mainly because of the different nature of asset eligibility requirements in the Irish laws.

"If you look at Germany there is a healthy pfandbriefe market but there is also a healthy RMBS market," explains one market analyst. "What you see in the securitization market are mortgages above 60% loan-to-value, because up to 60% they are eligible for the pfandbriefe but above that they are more suitable for securitizations. There is no reason why this would not happen in the Irish market."

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