In another sign of looser lending in commercial real estate, rating agencies have been demanding additional investor protections for what are known as the “junior” triple-A tranches of CMBS.

Junior triple-As were developed in the middle of the last decade as part of an effort to attract non-traditional investors to commercial mortgage-backeds. Instead of a single triple-A class of securities, banks started structuring deals with a senior tranche that had even more subordination than necessary to get a triple-A rating: the senior triple-A.

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