The Turkish parliament last week approved a bundle of mortgage-related amendments to current laws. The idea is to promote mortgage origination, which has lost steam since mid last year, and give rise to a viable secondary market. The changes will take effect once they are published in the official gazette following ratification by President Ahmet Necdet Sezer, according to sources. New reports indicated that there were no compelling challenges to final approval.

When the amendments will lead to a genuine RMBS market is anyone's guess, but everyone agrees they form a necessary first step. "It will be a while before you'll see activity," said one London-based banker, expressing a pervasive sentiment. Another banker envisioned, down the road, a nascent market where differentiated transactions would define the RMBS and covered bond landscape. "Transactions will be esoteric, other than one size fits all," he said.

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