The Australian Securitisation Forum has stepped up its campaign to persuade the Australian Prudential Regulation Authority to make provision for the operation of securitisation master trusts in its revised prudential standard for the sector.APRA is scheduled to complete its review of securitisation arrangements in the second half of the year and one of the matters for consideration is whether it should allow master trusts to operate in the local market, as they do in some markets overseas.Master trusts are revolving structures that allow issuers to establish an issuance program, rather than the one-off issues that are standard now.Last week, the ASF issued a discussion paper that argues there is a large potential investor base for high quality securitised debt of the type issued by Australian lenders.However, many investors are unable to invest in existing structures. Mandates may preclude investors from holding pass-through securities (mortgage-backed securities return capital as the loans in the collateral pool amortise).The ASF said master trusts facilitate the issue of "controlled amortisation" securities, such as soft bullets (where all the principal is paid back at a maturity date), which would address investor concerns."Investors like certainty," said Chris Dalton, the ASF's chief executive.Controlled amortisation securities would offer the additional benefit of lowering currency hedging costs.The paper said that the establishment of master trusts would make it easier for issuers to create securities that are tailored to investor requirements. For issuers, master trusts can have the benefit of reducing documentation requirements and ratings agency costs.Dalton said the ASF's intention was that master trusts would be for funding-only securitisation, not securitisation for capital relief.A funding-only securitisation is one where the issue is a funding vehicle and the issuer retains most or all of the credit risk by holding the subordinated tranches. A securitisation for capital relief is one where the issuer seeks capital benefits by having a third party hold the subordinated tranches.Dalton said: "ADI [authorised deposit-taking institution] issuers are looking to use master trusts as a funding tool only; capital relief is not being sought."