More risk retention please, CMBS investors say
LAS VEGAS - Rules requiring "skin in the game" in securitizations caused a lot of hand-wringing in the commercial mortgage bond last year. Participants fretted that a requirement to hold 5% of the risk in deals would increase funding costs, causing them to lose market share to other kinds of lenders, such as commercial banks and insurance companies.
Turns out commercial mortgage bond investors are big fans.
Investors think that risk retention will encourage tighter underwriting of co...