Special servicers are more frequently using hope notes to work out troubled commercial mortgage-backed securities loans. Amherst Securities Group has calculated that there have been 120 hope notes structured since the 2008 recession began, which has led Darrell Wheeler, managing director at the New York-based fixed-income boutique, to question whether hope notes are the best way for special servicers to work out troubled loans. “In many of these cases, the servicer would argue that the hope note was necessary in order to inject capital into a troubled property,” he said, explaining that borrowers often are able to....

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