Last week saw the successful completion of the second phase of the restructuring of Mortgage Funding 2008-1 PLC, a Lehman Brothers-originated RMBS transaction. (We reported on the August closing of the first phase in a prior Alert.) As of last week, the credit structure for the transaction is now fully optimised; whereas before, the transaction comprised two classes of notes (the more senior of which was rated AA by S&P and AA- by Fitch and the more junior of which was unrated), the transaction now comprises five classes of notes.