Why dual tracks could be the answer for CMBS defaults

Author: Gemma Varriale | Published: 10 May 2012

The Opera Finance commercial mortgage backed security (CMBS) has put an end to uncertainty around how the first European CMBS to default at maturity would be worked out.

The class A noteholders voted to accept a credit bid from an entity sponsored by private equity firms Patron Capital and TPG to acquire the underlying loan in an enforcement sale.

But the landmark transaction also saw the development of a dual-track strategy which,...