The lack of liquidity in the structured finance market is beginning to hinder the ability of CMBS issuers to originate loans at the same clip they were doing in the first half of the year. With a much slower pace of origination, the deals become more concentrated, according to Moody's Investors Service.

Since CMBS deals are not normally very diverse in the first place, they "are on the frontier of where loan diversity becomes a significant credit issue," according to a recent report written by Moody's analysts. The Herf score allows the rating agency to make sure each deal is properly enhanced.

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