CMBS

Commercial Mortgage-Backed Securities (CMBS) are investment products created by pooling together commercial real estate loans—such as those for office buildings, hotels, or shopping centers—and then selling shares of this pool to investors. The payments from tenants on these real estate loans are used to pay interest and repay the investors over time. CMBS allow lenders to free up capital and investors to gain exposure to commercial real estate assets without directly owning property. They are structured with multiple layers of risk and return, often with varying levels of security and priority for repayment.