CMBS E-Primer
Welcome to the CMBS E-Primer! This book aims to give the reader an introductory, yet comprehensive, overview of the process of Commercial Mortgage Backed Securities, or CMBS. This book was the brainchild of the trade association for CMBS, Commercial Mortgage Securities Association (CMSA), which decided that its deep member base would benefit from another educational tool to accommodate its growth ranks: a written handbook to introduce readers to the fundamentals of CMBS.
We are also proud to introduce podcast interviews with E-Primer chapter authors. The interview with Chapter One author Annemarie DiCola is now posted below. Stay tuned for more interviews in the coming weeks!
Questions? Comments? Suggestions for other chapters? We would love to hear your feedback at eprimer@cmbs.org.
Introduction and Acknowledgements
A Fundamental CMBS Overview
by Annemarie DiCola
What is a Commercial Mortgage-Backed Security?
Interview with Annemarie DiCola
The History and Evolution of the CMBS Industry
by Thomas Wratten and Darrell Wheeler
A broad overview of a business that started over twenty years ago.
Originating and Underwriting Commercial Mortgages for CMBS
by Joseph Rubin and Richard Schlenger
A comprehensive analysis of the loan origination process.
Issuing a CMBS
by Josh Phillips
The two levels of "structuring" that are entailed in securitization.
Part One: Investing in AAA CMBS
by Paul Collura
CHAPTER FIVE Part One Investing in AAA CMBS Paul Collura AAA rated CMBS securities provide an attractive fixed income investment given their priority of cashflows, stable credit performance, low spread volatility, and strong market liquidity. Given the minimal convexity from prepayment risk, AAA CMBS are one of the fe
Part Two: Investing in Mezzanine CMBS
by Stephen Kraljic
CHAPTER FIVE Part Two Investing in Mezzanine CMBS Stephen Kraljic CMBS mezzanine tranches allow an investor to move down the capital structure to achieve higher yields but with greater risk. Mezzanine tranche investing is similar to most other products: an investor must understand the risks and rewards to determine if
Part Three: Investing in IO CMBS
by Lisa Pendergast
CHAPTER FIVE Part Three Investing in CMBS IO Lisa Pendergast While more complicated than most CMBS securities, CMBS IOs in all their permutations are a relatively simple asset class to analyze when compared with other ABS and MBS markets. Yet, despite the evolution of the CMBS market in general, CMBS IOs remain one of
Part Four: Investing in B-Piece CMBS
by Larry Duggins
CHAPTER FIVE Part Four Investing in B-Piece CMBS Larry Duggins B-piece” or “high yield” investing refers to the purchase of CMBS bonds rated BB+ and lower. The priority of payments in typical CMBS transactions places these bonds last in the cashflow waterfall, and therefore at the greatest risk of significant loss of
Managing the Life of a CMBS
by Patrick C. Sargent, Stacey Berger and Michael B. Evans
A look at how the transaction is maintained or managed to provide for
its performance.
An Overview of the REMIC Structure
by Robyn Stern
What is a REMIC and why has it remained such a popular tax vehicle?
B-Notes and Mezzanine Debt in CMBS
by Stav Gaon and Darrell Wheeler
The increasing variation in A/B notes and mezzanine debt structures that have been utilized to date.