Finance
What is 'commercial mortgage-backed securities' (CMBS) and how do they relate to Rhode Island commercial real estate?
AA state-issued commercial bond
BBonds backed by pools of commercial mortgages, providing a source of financing for commercial real estate by connecting lenders to capital markets✓ Correct
CA Rhode Island-specific mortgage product
DA type of government-guaranteed commercial loan
Explanation
CMBS are bonds backed by pools of commercial mortgage loans, sold to investors in the capital markets. CMBS financing is a significant source of capital for commercial real estate in Rhode Island and nationwide, though CMBS loans often have stricter prepayment restrictions.
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