Hedge fund Cerberus Capital Management is reportedly one of several firms planning to enter the market for the lowest-rated and unrated parts of commercial mortgage-backed security deals. Interest in B-pieces has increased this year, but there are concerns about the risks involved, especially as underwriting has gotten looser. "Common wisdom among investors is that the credit quality of CMBS isn't shockingly weak, but the pace at which it has deteriorated is surprising," says David Rodgers, a principal of Park Bridge Financial.

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