CMBS (Commercial Mortgage-Backed Securities)

• CMBS are collateralized using non-recourse loans on commercial (i.e., income-producing) properties.
• Non-recourse means that the only cash flow support provided from the loan comes from the ability of the property to generate income and from the value of the property itself.
• The lender cannot seize personal assets of the borrower to satisfy any portion of the unpaid obligation.