DDR1

Still, as the first new issue under the auspices of TALF, DDR1 has been received with cautious optimism in a market thirsty for new sources of credit.

The New CMBS 2009

DDR1 is by no means the perfect borrower: Its issuer debt rating was downgraded by Fitch to BB with a negative outlook in May.

The New CMBS 2009

Still, DDR1 succeeds precisely because it does not overlap with or directly address the most pressing challenges in today's financing market.

The New CMBS 2009

Like DDR1, the Bank of America issue is purported to be a single-borrower, single-loan transaction secured principally by 44 office and industrial properties owned by Fortress Investment Group.

The New CMBS 2009

As far as implications for broader liquidity, the market has been more reserved in its assessment of DDR1.

The New CMBS 2009

While DDR1 qualified for TALF, Reuters and The Wall Street Journal have reported that the Bank of America deal will not be eligible.

The New CMBS 2009

As compared to the large fusion deals from years past, DDR1 is relatively much smaller, both in terms of its principal balance and the number of properties.

The New CMBS 2009

While conventional approaches to risk assessment will point to the risks of borrower concentration and sector concentration, the absence of diversity in these dimensions of DDR1 is among its strengths, at least as concerns its ability to attract investor interest.

The New CMBS 2009

In facilitating DDR1, the parties to the deal have undoubtedly helped our industry take an important step forward.

The New CMBS 2009

In key respects, DDR1 is unlike the CMBS that the market had grown accustomed to before the downturn.

The New CMBS 2009