文档介绍：Chapter mercial Mortgage Backed Securities (CMBS)
Chapter 20:
Commercial Mortgage Backed Securities (CMBS)
203>.1. What are CMBS?
CMBS are mortgage-backed securities based mercial mortgages.
Provide claims ponents of the CF of the underlying mortgages.
Issued in relatively small, homogeneous units, so as to facilitate trading by a large potential population of investors,
Including those who do not wish (or are unable) to invest large sums of money in any given security.
Many CMBS are traded in relatively liquid public exchanges (part of the bond market).
Market for a given individual security is likely to be rather thin, but the similarity within classes of securities is great enough to allow relatively efficient price discovery and resulting high levels of liquidity in the market.
Other CMBS are privately placed initially, only traded privately (if at all).
. What are CMBS?
Commercial mortgage loans that are:
Originated
Pooled
Rated by a rating agency
Sold as a security
Trustee
Oversees Pool
Servicer
(Master Svcr,
Sub-Svcrs)
Collects CF
Special Sevicer
Deals with defaults, workouts
CMBS - Servicers and Lingo
Real Estate Mortgage Investment Conduit (REMIC)
Pooling and Servicing Agreement (PSA)
Servicers: Master, Sub, and Special
Trustee
B-Piece Buyers
Rating Agencies
A brief history: The birth of an industry
Resolution Trust Corporation (RTC), Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA):
RTC (Federal Govt Corp) set up to liquidate the loan portfolios of thrifts and banks that had failed in mercial property crash of the late 1980s. RTC had to sell large quantities mercial mortgages, quickly.
Traditional private instl sources of . capital not available at that time (they were “crashing and burning” due to 80s . finance binge). But bond mkt on Wall St was thriving, spent the 1970s and 80s cutting its teeth on derivatives based on residential MBS, had developed proc