In a note released this morning, Standard & Poor's analysts said that without the potential regulatory hurdles, the  conduit B-piece demand will be sufficient to support the estimated CMBS issuance this year.

However, the analysts said that the small number of buyers could restrain the growth of the sector.

In 2011, S&P analysts said there were eight active participants, Rialto Capital Management (six deals), Blackrock (three), Torchlight Loan Services (three), LNR Property Corp. (two), H/2 Capital Partners (two), NorthStar Realty Finance Corp. (one), CBRE Global Commercial Real Estate Services (one), and Ellington Management Group (two), purchasing an estimated $1.5bn in B-pieces.

Year-to-date, S&P analysts projected that three firms, Rialto (two), CBRE (one), and Blackrock, have bought roughly $250 million in B-pieces.

At the peak in 2006-2007, about a dozen players bought over $5 billion worth of these classes.

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