Analysts at Bank Of America Merrill Lynch said in a report this week that macro economic events coupled with deteriorating underwriting standards in CMBS and a heavy issuance calendar has led to more tiering in CMBS pricing in recent weeks.

Investors, said the analysts in the report, have more room to be selective and price in weaker underwriting standards and weaker collateral quality. “Previously this year when spreads were tightening, investors capitulated in order to put money to work even if they were concerned with weaker underwriting standards and collateral quality,” said analysts at the bank.

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