LIBOR

CMBS Credit Spreads: What You Need to Know

CMBS Credit Spreads: What You Need to Know

CMBS credit spreads are defined as the difference between the appropriate swap or Treasury rate and the interest rate of the CMBS loan. CMBS loan pricing is based on the current swap rate or U.S. Treasury rate plus this credit spread, which compensates the lender for the risk of providing the loan to the borrower.