Investment Executive reported, “ Commercial real estate could be the next trouble spot for large U.S. financial institutions that are already saddled with significant risk from their residential real estate exposures…”  In a new report Fitch Ratings predicts “…In a new report the rating agency suggests that losses on commercial mortgage-backed securities (CMBS) collateral are likely to increase as the credit cycle progresses. Fitch projects CMBS delinquencies to double, and perhaps triple, by the end of the year.”   The article goes on to say that lenders are not looking at the type of exposure they faced during the S&L Crisis because of  “diversified portfolios.”