Clark Street Capital provides portfolio management solutions and operates a loan sale platform to help banks resolve troubled commercial real estate loans. The company analyzes loan portfolios, provides valuations, and markets loans to institutional buyers. While the bid-ask spread remains wide, commercial mortgage backed securities are returning and life insurance companies and regional banks have increased lending activity, though at lower loan-to-value ratios. Recovery rates on defaulted loans liquidated in 2009 averaged 59% before costs, though dropped in the fourth quarter. Regulators encourage loan workouts over foreclosure and may impose new commercial real estate concentration limits on banks.