If the pricing of a recent commercial mortgage-backed security deal is any indication, risk-retention rules are giving large banks a competitive advantage in this market.

The rules don't take effect until Dec. 24. But the first CMBS deal designed to comply with the Dodd-Frank Act requirement to keep “skin in the game” closed on Thursday. The $870.6 million transaction was well received by investors, and market participants credit the way in which the three sponsoring banks – Wells Fargo, Bank of America and Morgan Stanley – chose to retain the risk.

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