Commercial Mortgage-Backed Securities (CMBS) Loans
Commercial mortgage-backed securities (CMBS loans) are a popular loan type for commercial real estate owners. They come with various advantages like fixed interest rates and nonrecourse financing options. CMBS loans are typically packaged and sold to investors as bonds. These bundles vary in loan terms, amount and property types. Fixed interest rates CMBS loans typically feature fixed interest rates that are based on the US Treasury swap rate plus a margin, also known as the spread. This spread compensates lenders for taking on this risk