After years in the doldrums, CMBS is on its way back. Although deal activity remains low compared with the heights of 2006, it is increasing across the US and EU as investors seek higher yields. As the market starts to recover, the regulatory landscape has shifted, to one of risk retention and closer bed fellows.
Recently, the Bank of England and European Central Bank published a joint response to a European Bank Authority report late last year on how to improve (or retrain, depending on your perspective) the securitisation markets, mainly by tightening EU risk retention rules.