commercial mortgage backed securities

Commercial Mortgage Backed Securities

Similar to MBS but backed by loans secured with commercial rather than residential property. Commercial property includes multi-family, retail, office, etc., They are not standardized so there are a lot of details associated with structure, credit enhancement, diversification, etc., that need to be understood when valuing these instruments.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Commercial Mortgage-Backed Security

A mortgage-backed security in which the mortgages on commercial building, offices, factories, apartments, and other buildings other than single-family homes collateralize the security. Unlike most other mortgage-backed securities, the structure of a CMBS is not standardized and as a result, it is difficult to assess its risk. It is also called a collateralized mortgage-backed security.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

commercial mortgage backed securities (CMBS)

Collateralized mortgage backed securities with an underlying pool of commercial (non-residential) loans. See also collateralized mortgage backed securities.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.