Assuming that neither of these challenges derails the market completely, it is inevitable that we will continue to witness the evolution of CMBS structures to address them.
As for 2016, if arrangers can build on the structural achievements of the past few years and not succumb to those challenges that have demonstrated the potential to paralyse the market, then there is the real possibility that CMBS 2.0 can finally be unlocked as a distribution tool for a greater number of loans.
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Iain Balkwill is a partner in the structured finance team at Reed Smith
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