If implemented as-is, the latest risk retention proposals that U.S. regulators will lead to changes in deal structure and credit quality in commercial mortage backed securities, according to a report by Deutsche Bank analysts.

Even though the revised rules announced Aug. 28 are gentler on deals that previous iterations — there is not premium capture reserve requirement, for instance — the results would still send up financing costs for most conduit CMBS by about 10-12 basis points.

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