Private equity firm Blackstone is thought to be planning to defy the stagnation in the credit markets by launching the biggest ever commercial mortgage backed security.

A research note from Credit Suisse said Blackstone was planning a $9bn (£4.5bn) CMBS in the first quarter of next year, backed by Hilton hotels.

If the issue goes ahead, it will be a massive test of investor appetite for the mortgage backed securities that underpinned the wave of cheap debt available to property companies during this decade’s bull run.

Testings times

Only one new CMBS issuance has been launched since July, Lehman Brother’s €1.1bn (£793m) Windermere XIV. The pricing reflected the changed attitude towards risk amongst investors, with margins more than double what they had been before the credit crunch.

According to Credit Suisse, the offering will be led by Bear Stearns, Bank of America, Deutsche Bank, Goldman Sachs and Morgan Stanley.

Blackstone bought Hilton for $20bn (£10bn) plus debt in July.