New risk weight rules, known as Basil III, are having a significant negative impact on banks’ required capital allocation for investment in CMBS securities rated below AAA. Previous to impending Basil III capital rules, CMBS securities rated from AAA to AA- had a 20% risk weighting. When Basil III … [Read more...] about 5.29.15: New Risk Weight Rules Hurt Banks Investing in CMBS
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