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European CMBS recovery faces capital constraints

Confidence in securitisation has risen but prohibitive capital rules could hold back the commercial mortgage-backed securities sector

European CMBS recovery faces capital constraints

The market in commercial mortgage-backed securities, bonds typically backed by bundled commercial property loans, gained some momentum last year when banks and brokers structured deals that set post-crisis milestones.

However, while several deals became more complex, suggesting a return in confidence among investors, activity is still at a low base and there are fears that capital rules will cap the sector's growth.

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