The emergence of CMBS in the early 1990s changed the market for commercial mortgages fundamentally—for lenders, borrowers, and investors. Lenders no longer had to keep the mortgages they issued on their books for the duration of the loan. Instead, they could sell the stream of interest and principal payments to investors, freeing up their capital for more lending or other business activities. Borrowers, meanwhile, benefited from improved loan availability and competitive rates.
Update:
Principal Claritas is now Principal Asset Management Ltda. Learn more about our operations in Brazil.