Moody's Investors Service expects the securitization of existing assets in Turkey to launch in the first quarter of 2008, according to a report by the agency. In March, the Turkish parliament enacted a mortgage law that sets up a framework for building primary and secondary mortgage markets. In May, regulators issued the supporting regulations for mortgage-covered bonds and RMBS. Earlier this month, the bylaws governing each type of product went into effect.
Right now, Turkish banks are preparing eventually to securitize their existing assets or issue covered bonds. "The banking sector is trying to get their IT systems in place," said Burak Cerrahoglu, an analyst of structured business development at Moody's.