Commercial property debt continued to see more delinquencies in October, according to several rating agencies, and one rating agency voiced concern about how these problems will impact small and mid-sized regional banks.

The bad news comes as Wall Street tries to launch a commercial mortgage bond under the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF). The deal is a $400 million offering featuring a loan to Developers Diversified Realty Corp. The loan is secured by 28 separate shopping centers.

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