WAYNE M. FITZGERALD II
MARK D. PALTROWITZ
Commercial mortgage-backed securities (CMBS) are structured products that provide debt financing to the commercial mortgage market. CMBS are a component of commercial real estate finance (commercial banks, insurance companies, and pension funds also make direct loans to owners of commercial real estate).
As with residential mortgage-backed securities (RMBS) products, CMBS represent economic interests in pools of mortgage loans. The structure used to create CMBS transfers the credit risk of the underlying commercial real estate loans to the owners of CMBS. Certificate subordination increasingly mitigates ...