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CMBS

Fixed Income
Definition
Commercial Mortgage-Backed Security. Same as MBS but backed by mortgages on office, retail, multifamily, and industrial properties. Highest-quality CMBS issued by GSEs (Freddie Mac K-deals).

2024-2025 CMBS distress concentrated in office buildings, where post-COVID vacancy + higher rates pushed many properties below loan value. Some AAA-rated office CMBS slices took losses for the first time in history.
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