Commercial MBS

From Open Risk Manual

Definition

Commercial MBS (CMBS) denotes Commercial Mortgage-Backed Securities, which are trust certificates (bonds) backed by a pool of commercial mortgage loans.

Issues and Challenges

  • In contrast to Residential MBS, CMBS may package (bundle) either a large number of small size commercial mortgages or a smaller number of relatively large mortgages (in the extreme case a single loan). The performance of the security is linked to the performance of the underlying loans in potentially quite intricate ways.
  • Overlap with so-called CRE CDO's

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

Contributors to this article

» Wiki admin