Japan's commercial mortgage-backed securities market has been growing at an unprecedented rate this year, but a working group of the Japanese Institute of Certified Public Accountants look set to issue guidelines that may make some potential issuers think twice before turning to CMBS.

The working group, which was formed in November last year, is likely to recommend that a property company that retains more than 5% of the subordinated portion of a CMBS will be required to account for the building or buildings on its balance sheet, bankers and accountants in Tokyo said. The report is expected to be published in June or July.

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