Tap to get financing
CMBS Loans
Property types
Mobile Home Park CMBS LoansHospital CMBS LoansIndustrial CMBS LoansHotel CMBS LoansRetail CMBS LoansSelf-Storage CMBS LoansMixed-Use CMBS LoansOffice CMBS LoansApartment CMBS LoansCMBS Property Types
Loan basics Loan terms
About
TeamLeadership
Loan docs Blog CMBS Alternatives
Get financing
Was This Article Helpful?
Newly Published
Jun 14 at CMBS Loans
Pooling and Servicing Agreements: What CMBS Borrowers Need to Know
Jun 14 at CMBS Loans
CMBS Servicing: What Borrowers Need to Know
Jun 14 at CMBS Loans
CMBS and REITs: What Commercial Borrowers Should Know
Explore the Janover Network
Jan 27 at Multifamily Loans
4 Steps to Increase Your Apartment Building's Occupancy
Jan 26 at Commercial Real Estate Loans
How Does ChatGPT Work With Commercial Real Estate?
Jan 25 at Commercial Real Estate Loans
Capital Gains Taxes in Commercial Real Estate
CMBS Loan Secrets
Last updated on Nov 25, 2022
2 min read

ABS: Asset Backed Securities vs. CMBS: Commercial Mortgage Backed Securities

Asset backed securities (ABS) are financial securities backed by a pool of assets that produce income, generally loans. In the case of mortgage backed securities (MBS) and commercial mortgage backed securities (CMBS), the underlying assets are, respectively, residential and commercial mortgages. However, unlike MBS, asset backed securities are backed by non-mortgage loans, including auto loans, student loans, credit card debt, and variety of other types of debt.

Apply for a loan in minutes and get multiple quotes today → Get Quotes

In this article:
  1. Asset Backed Securities (ABS), Mortgage Backed Securities (MBS, and Commercial Mortgage Backed Securities (CMBS)
  2. How CMBS and MBS are Created
  3. To learn more about CMBS loans, fill out the form below to speak to a conduit loan expert today!
  4. Get Financing

Asset Backed Securities (ABS), Mortgage Backed Securities (MBS, and Commercial Mortgage Backed Securities (CMBS)

Asset backed securities (ABS) are financial securities backed by a pool of assets that produce income, generally loans. In the case of mortgage backed securities (MBS) and commercial mortgage backed securities (CMBS), the underlying assets are, respectively, residential and commercial mortgages. However, unlike MBS, asset backed securities are backed by non-mortgage loans, including auto loans, student loans, credit card debt, and variety of other types of debt. Therefore, it could be argued that the structural differences between ABS, MBS, and CMBS are mostly superficial-- it is only the exact type of loan that changes.

Both ABS and MBS are generally divided into tranches based on risk; certain tranches are lower risk and offer lower potential returns, while other tranches are higher risk and offer higher potential returns.

How CMBS and MBS are Created

In general, to create an mortgage backed security, like a CMBS, the initial lender will sell the loans to a trust, which is typically set up as a special purpose entity (SPE), or special purpose vehicle (SPV), in order to pool the loans together and issue them to investors. Other major creators of MBS products include Ginnie Mae (the Government National Mortgage Association), which securities government-insured loans, including many HUD/FHA-insured single-family and multifamily loans. Other prominent MBS issuers include Fannie Mae and Freddie Mac which are both GSEs (government-sponsored enterprises).

In a similar fashion, asset backed securities also are created by pooling assets into a trust. For instance, a credit card company, such as Capital One, will pool unpaid credit card debt into a trust, which will issue semi-regular payments to investors who purchase shares. The same can be said for auto loans, student loans, and other loan products that are securitized into ABS.

To learn more about CMBS loans, fill out the form below to speak to a conduit loan expert today!

In this article:
  1. Asset Backed Securities (ABS), Mortgage Backed Securities (MBS, and Commercial Mortgage Backed Securities (CMBS)
  2. How CMBS and MBS are Created
  3. To learn more about CMBS loans, fill out the form below to speak to a conduit loan expert today!
  4. Get Financing
Categories
  • CMBS Loans
  • Conduit Loans
Tags
  • CMBS Loans
  • Conduit Loans
  • Conduit Financing
  • CMBS Financing
  • CMBS loans
  • MBS
  • RMBS
  • Mortgage Backed Security
  • Asset Backed Security
  • ABS vs. MBS

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

CMBS Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@cmbs.loans

Property types

Mobile Home Park CMBS Loans
Hospital CMBS Loans
Industrial CMBS Loans
Hotel CMBS Loans
Retail CMBS Loans
Commercial mortgage calculator

Self-Storage CMBS Loans
Mixed-Use CMBS Loans
Office CMBS Loans
Apartment CMBS Loans
CMBS Property Types

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.