Commercial MortgageBacked Securities
Commercial Mortgage-Backed Securities are a type of asset-backed security that is secured by the cash flows from a portfolio of commercial real estate loans. These loans are typically pooled together and securitized into bonds that are then sold to investors. The cash flows from the underlying loans, such as rental payments or mortgage payments, are used to make payments to the bondholders. Commercial Mortgage-Backed Securities are often divided into different tranches with varying levels of risk and return, allowing investors to choose investments that match their risk tolerance.