Russia's mortgage-finance market is sloughing off the toxic residue of the financial crisis, but the strength of the comeback is being largely conditioned by government support.

Still, appetite from private-sector investors might be enough to absorb moderately-sized deals, sources said. And there are signs of a modest revival: origination is climbing again, Russian mortgage agency AHML recently closed a RUR13.5 billion ($448 million) RMBS - its first in a couple of years - and covered bonds are expected to draw new converts such as Societe Generale unit Delta Credit.

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