There is growing concern that the quality of the commercial mortgage-backed securities coming to the market is declining amid the industry’s revival. CMBS investors say that a lack of diversity in the bonds and a rise in loan-to-value ratios make the new crop of bonds riskier. Amherst Securities reports that the average stressed loan-to-value ratio on CMBS valued at $8 billion offered this year is 89% compared with 82% on roughly $10 billion of the bonds sold last year.

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