CMBS stands for commercial mortgage-backed security. It is a type of asset-backed security (ABS) that is backed by a pool of commercial mortgages. CMBS are typically issued by special purpose vehicles (SPVs), which are legal entities that are set up specifically to hold the underlying assets and issue the securities.
CMBS can be used to finance a variety of commercial real estate projects, such as office buildings, hotels, and retail properties. The securities are typically divided into tranches, with each tranche having a different level of risk. The most senior tranches have the lowest risk and are typically paid first in the event of a default. The most junior tranches have the highest risk and are typically paid last.
Here are some examples of CMBS:
- Wells Fargo Commercial Mortgage Trust 2023-A
- Morgan Stanley Commercial Mortgage Trust 2023-B
- Barclays Bank PLC Commercial Mortgage Trust 2023-C