CMBS Loans (collateral mortgage back securities) are fixed income securities backed by a mortgage, and secured by commercial real estate loan. CMBS can provide liquidity to Prime Commercial Lending and real estate investors. CMBS loans are typically used for commercial properties such as hotels, office buildings, factories, and multifamily buildings. A bank creates CMBS loan by bundling of loans they have acquired, packaging them all together, and then selling them as a series of bonds. Investors choose to invest in the CMBS loans based on their level of risk.
See more on Prime Commercial Lending’s Commercial Real-Estate Financing programs, here.