The recent CMBS backed by nonperforming commercial real estate (CRE) loans from Rialto Capital Advisors is the beginning of a trend, Fitch Ratings said in a recent report. It is the first CMBS to be backed by nonperforming loans (NPLs) in years.

The $132 million deal's collateral consisted mostly of NPLs and real estate owned or REO properties that were bought by Rialto at a considerable discount to the unpaid principal balance, according to a Fitch presale on the transaction.

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