CMBS
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Commercial mortgage-backed security |
|---|---|
| Categories | Business & Finance |
CMBS stands for Commercial mortgage-backed security, a bond & Fixed-Income abbreviation.
Bond backed by a pool of loans on commercial properties such as offices, shopping centers, hotels, warehouses and apartment buildings. Unlike agency residential MBS, CMBS carry no government guarantee, and their loans often have prepayment penalties.
Example: Delinquencies on office loans in CMBS pools rose above 10 percent as remote work emptied buildings.
Usage notes
Each CMBS deal has a special servicer that takes over troubled loans. Investors watch delinquency and special-servicing rates published by data firms such as Trepp. Most loans have balloon payments due at maturity, creating refinancing risk when property values fall.
Related abbreviations
More bond & Fixed-Income abbreviations
- AT1 – Additional Tier 1 capital
- BTP – Buono del Tesoro Poliennale (Italian multi-year Treasury bond)
- CDO – Collateralized debt obligation
- CDS – Credit default swap
- CDX – Credit default swap index
- CLO – Collateralized loan obligation
- CMO – Collateralized mortgage obligation
- CoCo – Contingent convertible bond
- CP – Commercial paper
- DV01 – Dollar value of a basis point
- ESTR – Euro short-term rate (€STR)
- EURIBOR – Euro Interbank Offered Rate