As the country anticipates a slowdown, investors are wary of headline risk in CMBS transactions In response, a recent report by Salomon Smith Barney compiled a list of CMBS deals with a considerable exposure to weaker retail credits: K-Mart and Circuit City were some of the retailers mentioned that had comparatively higher exposures in CMBS transactions.

The resulting list was not as robust as the bank expected, thus minimizing actual credit risk. However, the bank expects the number of transactions that may suffer from credit deterioration to increase if the economy slows even further, causing headline price risk in the medium term.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.