An eminent domain action this year that a recent Barclays Capital report indicated might hurt certain investors in one CMBS deal was a one-off event that could have been worse. But it is nevertheless is worth noting as it serves as a reminder that this known but rare risk can crop up occasionally.

“I think the most interesting part here is actually the fact that it’s very difficult to identify those cases before they actually occur,” said Julia Tcherkassova, one of the authors of the securitization research report, when asked about the eminent domain risk.

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