The commercial real estate market bottomed out in 1992, but has shown some signs of recovery lately. Private conduits are now performing well in that market. The biggest problem is there are few sources of capital.

Liquidity is what lawmakers and trade groups are aiming for, and they'll likely get it when one of two House bills creating a secondary market gets passed in 1994. Both bills were put off until early 1993, but once Rep. Barney Frank, D Mass., rebuilds the bridge he supposedly burned when he unveiled his bill without talking to Rep. Paul Kanjorski, D-Pa. - who has a similar bill - they'll be married up and move on to the Senate, where it should draw support.

Frank's bill is the more palatable to trade groups because it follows closely with Sen. Alfonse D'Amato's bill for securitizing small business loans, but Kanjorski may slow the proceedings by trying to incorporate some of his participant eligibility requirements that those same groups dislike so much.

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