A number of troubling trends are developing in the commercial mortgage-backed securities market, Standard & Poor's said. A growing number of property appraisals are based on optimistic assumptions about future rent and occupancy, the credit rating agency said. "We continue to see instances where we believe that valuations are questionable, especially within the larger loans for certain property types, particularly office and hotel, in primary markets," S&P credit analyst James Manzi wrote in a report.

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