CMBS Debt Yield

Debt Yield in Relation to CMBS Loans

Debt Yield in Relation to CMBS Loans

When it comes to CMBS loan underwriting, DSCR and LTV aren’t the only factors that a lender considers. Increasing, lenders are looking at a another metric, debt yield, in order to determine whether it’s truly worth approving a borrower for a conduit loan. Debt yield can be determined by taking a property’s net operating income (NOI), dividing it by the loan amount, and multiplying it by 100.