CMBS 2.0 – Quantum or Solace

Sunday marked the fourth anniversary since Deutsche Bank successfully brought to market Deco 2011-CSPK ("Chiswick Park").  As many market observers will testify, this was a defining moment  for the European CMBS market as it not only marked the return of true primary issuance but the transaction included structures that were designed to overcome many of the structural flaws that were inherent in the CMBS 1.0 vintage of notes.  In effect Chiswick Park, along with the CREFC guidelines issued in November 2012 (Market Principles for Issuing European CMBS 2.0) and the investor guidelines set out in an open letter signed by fifteen CMBS investors in March 2013, can be credited with heralding the dawn of a new era of CMBS deals ("CMBS 2.0").