The RMBS market will not enter a recovery phase until pricing for senior notes goes below 100 basis points, a debt market conference agreed yesterday.Most but not all of the speakers at the Australian Credit Forum said that level of pricing would be reached in the current financial year. Among the bears, Nigel Pickford, executive general manager securitisation in the Commonwealth Bank group treasury, said based on the bank's internal pricing model a spread of 105 basis points over the swap rate would make issuance by the bank's Medallion Trust feasible.But Pickford said he did not have a lot of confidence in the market's recovery and was not prepared to predict that pricing would reach a sustainable level in the current financial year.Fitch Rating's head of Australian and New Zealand structured finance, Ben McCarthy, said mortgage prepayment rates were such that $20 billion of RMBS stock would disappear from the market in the year ahead. This would help restore the supply and demand balance.McCarthy said $10 billion of RMBS was issued by Australian institutions in the 2007/08 financial year, compared to $50 billion in the previous financial year. McCarthy predicted that issuance would rise to $20 billion in the current year and that pricing would come back into a range between 75 and 100 basis points.The senior credit analyst at Challenger Financial Services, David Goode, said he was cautious about making positive forecasts because a lot of paper was still coming onto  the secondary market. Goode said: "There still not much demand for primary issues."Pepper Homeloans chief executive Patrick Tuttle said issuers would follow the lead set by Macquarie Securitisation, where cornerstone investors were identified and issues tailored to their requirements.Tuttle said: "We think we can do a deal this year but we have to adapt to what investors want."NabCapital head of Australasian securitisation John Barry said he agreed that a 75 to 100 point spread represented fair value.But he said investors saw better value in other parts of the debt market, such as highly rated bank paper, and were not in a rush to get into anything they saw as illiquid.