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 Glossary Item 6-386-8207 (Approx. 3 pages)

Glossary

Commercial Mortgage-Backed Security (CMBS)

An asset-backed security (ABS) on which payments of principal and interest are made to the holders from revenue generated by an underlying pool of commercial mortgage loans. The underlying commercial mortgages are pledged to the holders of the securities as collateral for the payment by the issuer of principal and interest on the securities. Commercial mortgage-backed securities are most commonly issued by a special purpose entity as part of a securitization or structured finance transaction.