Commercial mortgage-backed security (CMBS) | Practical Law

Commercial mortgage-backed security (CMBS) | Practical Law

Commercial mortgage-backed security (CMBS)

Commercial mortgage-backed security (CMBS)

Practical Law ANZ Glossary w-036-5095 (Approx. 2 pages)

Glossary

Commercial mortgage-backed security (CMBS)

Debt securities (such as bonds or notes) which are issued in a securitisation transaction and backed by (that is, funded and secured by) a portfolio of mortgage loans secured on commercial properties. The issuer of the debt securities will predominately rely on principal and interest payments received from the borrowers under these mortgage loans to repay amounts due to the holders of the debt securities.