JP Morgan and Deutsche Bank are relying on Massachusetts Mutual Life Insurance Co. to keep skin in their next commercial mortgage securitization.

The banks are relying on an exception, unique to the CMBS market, that allows a third party purchaser to acquire securities necessary to comply with risk retention rules. The insurance company will acquire an “eligible horizontal residual interest” equal to the fair value of 5% of each class of securities to be issued in the deal.

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