The increasing number of potential buyers of CMBS B-pieces is positive for issuance in the sector, according to an emailed note from Standard & Poor's this morning.
However, S&P analysts said this might result in some credit deterioration in the medium-term as the ability to kick out loans weakens.
CWCapital, which was previously an active buyer of CMBS B-pieces, has reportedly been looking at recent deals and is considering re-joining the sector, analysts cited.
This addition would bring the total number of buyers of below-investment-grade classes to 11, which includes eight from last year, S&P analysts said. This also counts two newcomers to the market Raith Capital and Eightfold Real Estate Capital.
In an earlier report, S&P said that during the 2006-2007 peak of the CMBS market, there were about a dozen B-piece players that bought more than $5 billion worth of the bonds.
This year, as of the first quarter, three B-piece buyers have been active, buying roughly $250 million in B-piece bonds.
A story from the May edition of ASR also covers this topic.