J.C. Penney’s unexpected decision to raise capital sparked some concern among investors in commercial mortgage backed securities, as the retailer is the second largest tenant in this market, according to J.P. Morgan.

J.C. Penney said last week that it would sell 84 million shares of common stock to raise $800 million for general corporate purposes. J.P. Morgan analysts believe the capital raise is targeted to shore up the company’s balance sheet for the holiday sales season and ease vendor concerns about the company’s liquidity. They noted that the company’s stock hit 52-week lows of $9.05, while its five-year CDS reached a new high of 20 points upfront.

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