DECO: Precedent-setting European CMBS unravelled

Author: Gemma Varriale | Published: 15 Jul 2011

The first de-linked European CMBS since the start of the financial crisis will be viewed as a standard for future CMBS deals. Clarification on the role of servicers and bondholder meetings are especially helpful.

DECO 2011 – CSPK, issued by Deutsche Bank, closed on June 28. Banks will be keenly watching its revival ahead of restarting their own programmes.

"I’m not sure it’s turned out to be quite the success the market had expected once they’d heard it had launched," said Brad Duncan, general counsel at Citibank.

"When people start doing these deal in a few years, I think they’ll look to the deco deal as a standard," he said. "Now you’d have to do at least what they did in Deco to put together a deal."

Conor Downey, partner at Paul Hastings, lead counsel on the deal, thinks it has been a greater success than...