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
(561) 556-2121 Get financing →
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
May 22 at Multifamily Loans
Multifamily Minute Reader Reflections: What's the Most Important Part of Your Financing?
May 19 at SBA 7(a) Loans
Busting 5 SBA 7(a) Loan Myths
May 19 at SBA Express Loans
Top 5 Reasons to Get an SBA Express Loan in 2023
Was This Article Helpful?
CMBS Loan Secrets
Last updated on Feb 19, 2023
1 min read

What is a CMBX Index?

CMBX indexes track the market for CMBS (commercial mortgage backed securities), securities that themselves are backed by CMBS loans. CMBX indexes are an invaluable tool for investors who want to invest in CMBS, but they can also reveal important trends for commercial real estate borrowers who are considering taking out CMBS financing.

In this article:
  1. CMBX and CMBS Loans
  2. How CMBX Indexes Work
  3. To learn more about CMBS loans, fill out the form below to speak to a conduit loan expert today!
  4. Related Questions
  5. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

CMBX and CMBS Loans

CMBX indexes track the market for CMBS (commercial mortgage backed securities), securities that themselves are backed by CMBS loans. CMBX indexes are an invaluable tool for investors who want to invest in CMBS, but they can also reveal important trends for commercial real estate borrowers who are considering taking out CMBS financing. However, perhaps more importantly, the creation of CMBX indexes greatly increases CMBS trade volume and demand, making it much easier for borrowers to obtain conduit loans from lenders. The fact that they exist also typically reduces prices for CMBS borrowers.

How CMBX Indexes Work

CMBX indexes are gauged by using 25 tranches, or credit levels, of conduit loans. The highest tranches represent the lowest-risk, lowest-return loans, while the lowest tranches represent the highest-risk, highest-return loans. These indexes are recalculated every six months as new loans are placed in CMBS issuances and old (or non performing) loans are removed. CMBX allows investors to take both long and short positions on CMBS.

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

Related Questions

What is a CMBX index and how does it affect commercial real estate financing?

A CMBX index is a tool used to track the market for CMBS (commercial mortgage backed securities). It is gauged by using 25 tranches, or credit levels, of conduit loans. The highest tranches represent the lowest-risk, lowest-return loans, while the lowest tranches represent the highest-risk, highest-return loans. These indexes are recalculated every six months as new loans are placed in CMBS issuances and old (or non performing) loans are removed. CMBX allows investors to take both long and short positions on CMBS.

The existence of CMBX indexes greatly increases CMBS trade volume and demand, making it much easier for borrowers to obtain conduit loans from lenders. The fact that they exist also typically reduces prices for CMBS borrowers. The actual interest rate on a CMBS loan will generally be based on current U.S. Treasury swap rates, which often is lower for CMBS loans than for traditional commercial property mortgages.

What are the benefits of investing in a CMBX index?

The CMBX index provides investors with the ability to take both long and short positions on CMBS, allowing them to work within their own risk profiles. Additionally, CMBX indexes can reveal important trends for commercial real estate borrowers who are considering taking out CMBS financing. The fact that they exist also typically reduces prices for CMBS borrowers.

The advantages of CMBS financing include flexible underwriting guidelines, fixed-rate financing, and fully assumable loans. Lenders and bondholders can potentially achieve a higher yield on investments.

How does the CMBX index affect the pricing of CMBS loans?

The CMBX index affects the pricing of CMBS loans by increasing trade volume and demand, making it easier for borrowers to obtain conduit loans from lenders. The fact that CMBX indexes exist typically reduces prices for CMBS borrowers. CMBX indexes are gauged by using 25 tranches, or credit levels, of conduit loans. The highest tranches represent the lowest-risk, lowest-return loans, while the lowest tranches represent the highest-risk, highest-return loans. These indexes are recalculated every six months as new loans are placed in CMBS issuances and old (or non performing) loans are removed. CMBX allows investors to take both long and short positions on CMBS. Source and Source

What are the risks associated with investing in a CMBX index?

The risks associated with investing in a CMBX index include dishonest tranche ratings, which can have serious negative effects for borrowers and investors. Additionally, CMBX indexes are gauged by using 25 tranches, or credit levels, of conduit loans, and the highest tranches represent the lowest-risk, lowest-return loans, while the lowest tranches represent the highest-risk, highest-return loans. This means that investors may be taking on higher risk investments when investing in a CMBX index.

Sources:

  • cmbs.loans/blog/what-is-a-cmbx-index
  • apartment.loans/posts/cmbs-explained

How does the CMBX index compare to other commercial real estate indices?

The CMBX index is a unique index that tracks the market for CMBS (commercial mortgage backed securities). It is gauged by using 25 tranches, or credit levels, of conduit loans. The highest tranches represent the lowest-risk, lowest-return loans, while the lowest tranches represent the highest-risk, highest-return loans. This index is recalculated every six months as new loans are placed in CMBS issuances and old (or non performing) loans are removed. CMBX allows investors to take both long and short positions on CMBS.

In comparison, other commercial real estate indices are used to gain insight into where the market may be headed. These indices are simply one piece of data that investors and developers can utilize to gain a balanced perspective before making a business decision. However, individual property value is essential; and so are local market factors.

In this article:
  1. CMBX and CMBS Loans
  2. How CMBX Indexes Work
  3. To learn more about CMBS loans, fill out the form below to speak to a conduit loan expert today!
  4. Related Questions
  5. Get Financing
Categories
  • CMBS Loans
  • Conduit Loans
Tags
  • CMBS Loans
  • Conduit Loans
  • Conduit Financing
  • CMBS Financing
  • CMBS loans
  • Master Servicer
  • REMIC
  • CMBX

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
(561) 556-2121 

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
Commercial Loan Rates

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 © 2023 Janover Inc. All rights reserved.