Citigroup and Deutsche Bank are marketing the second commercial mortgage securitization of the year, according to rating agency reports.

In order to comply with “skin-in-the-game” rules that took effect Dec. 24, it relies on a strategy that has been much discussed, but never used, called the “L” strategy.  An affiliate of Citi will hold on to 1.9% “vertical” strip comprised of portions of each class of securities to be issues; a third party, KKR Real Estate Credit Opportunity Partners, will hold on to the remaining 3.1% “horizontal” strip comprised of the most subordinate class of securities.

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