The Commercial Real Estate Finance Council in Japan plans to revive CMBS by implementing new market standards.
The Tokyo-based council, whose members include Deutsche Bank and Mitsubishi UFJ Trust & Banking Corp., will concentrate on improving CMBS's disclosure, documentation and structure, said Tokio Ueyama, head of CRE at Deutsche Bank in Japan who is also co-chair of the industry group, according to a Bloomberg report. The standard is expected to be completed as early as the end of the year.
The new standard is expected to incorporate better documentation that outlines a clear process for firms that recover loan principals and interests in the case of CMBS defaults, according to the report.
