As rating agencies boost their CRE-surveillance criteria to defend against opacity, the Commercial Real Estate CDO market appears to be learning from transparency troubles in the ABS CDO space. Recently, Derivative Fitch released a report requesting CRE CDO managers to distribute enhanced and standardized loan-level information to investors in an effort to avoid downgrade shock, while increasing market liquidity.

"Our ratings are only as good as the information provided to us," said Jenny Story, managing director at Derivative Fitch. "We want to put this out and let investors know what kind of information they should be requesting within the indentures on deals, so they can make sure their deals are being properly monitored."

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