The CMBS market has changed materially in the years since the Global Financial Crisis (GFC). The most common, so-called ‘conduit’ deal with 50-100 loans no longer plays the same role it used to. Common reasons include the reduced number of originators given new regulations, and borrower and investor aversion to the product. Among other reasons, investor aversion to conduit deals can be blamed on its history of high losses affecting subordinated investment grade classes.
