A pickup in CMBS issuance is giving the market a much-needed liquidity boost, but underwriting standards are slipping as sponsors scramble to find enough collateral for deals, which are drawing investors looking for extra yields.

Just a few months ago, CMBS deals were relatively scarce — $11.6 billion of securities were issued last year, according to Trepp  — and they had to be underwritten pretty conservatively to entice investors. This week alone, two deals worth a combined $3.6 billion came to market, and market observers expect this year's issuance to total $35 billion to $50 billion.

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