A select group of investors that buy the riskiest slices of commercial mortgage securitizations have lost their appetite for the very worst offending loans.

Buyers of the B-rated tranches of CMBS are paid the highest interest rates but are first in line to take losses when loans used as collateral go bad. While they typically represent no more than 8% of the investor base, deals can’t get done without them. This gives B-piece buyers the power to blackball individual loans that they don’t feel comfortable with.

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