Federal regulators have revised a set of less restrictive risk-retention guidelines for commercial mortgage backed securities deals that could have a negative effect on refinancing and future CMBS growth, analysts warn.

While “substantially more lenient” than the first draft released in mid-2011, according to a Barclays' report, the new regulations may lead to at least a slight increase in primary loan coupons that “could raise the hurdle for loans looking to refinance and be somewhat of a drag on long-term issuance volumes.”

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