spot_img

Commercial Mortgage-Backed Securities As Legal Credit Union Investments

Date:

By Emily Moré Hollis, CFA Partner

What are Commercial Mortgage-Backed Securities (CMBS)?

Commercial mortgage-backed securities (CMBS) are bonds collateralized by mortgages on income-producing properties such as retail centers, office properties, health care facilities, industrial properties, multifamily dwellings and hotels. CMBS pools are diversified by geography, property sector, loan size, and tenants.

Commercial loans that were originated either to finance a commercial purchase or to refinance a prior mortgage obligation are the basic building blocks of the CMBS structure. The mortgage payments of these loans are dependent on the rental stream paid by the tenants to the property owners.  These payments back the CMBS. 

This content is for CU BUSINESS eMagazine , Special Deal: 2 websites , and NEW! The Leadership Team Builder Group Subscription members only.
Log In Register

Share post:

Popular

More like this
Related

14,000 Members Returned to Credit Unions

SAN DIEGO, CA. (December, 2022) CU Revest announces the...

ALM First Announces New Dates & Locations for Fall M&A Master Sessions

Dallas, TX – ALM First has expanded its M&A Master...

United Federal Credit Union Names Will Schirmer Chief Human Resources Officer

JOSEPH, Mich. –United Federal Credit Union has named Will...

Credit Unions and Credit Cards Can Help You Beat Inflation

We all know the story. Inflation is at its...