Report Finds Turnover in CMBS B-Piece Buyers

Increased commercial mortgage-backed securities issuance has brought several new B-piece buyers to market, according to a Fitch report Tuesday.

New entrants in this market include Rialto, Eightfold Real Estate Capital, Raith Capital Management and Blackrock, whom Fitch numbers among the biggest buyers of B-pieces in the past year.

The report notes that traditional B-piece buyers such as LNR Partners, CWCapital and C-III still hold market share in older vintages but have not been active buyers in the past year, although Rialto was originally founded by former co-founders of LNR.

While in the past B-piece buyers have tended to be special servicers, and Fitch has assigned five new special servicing ratings in the past year, Rialto is the only B-piece buyer among rated special servicers.

In addition to Rialto, CMBS special servicers Fitch has rated in the past year include Freddie Mac, Sabal, Strategic Asset Services and Urdang.