As one of the most important financial innovations in 1990s, Commercial Mortgage-Backed Securities (CMBS) have provided significant amounts of financing for commercial real estate. However, when the Asian and Russian financial crisis hit in 1998, the low rated CMBS market almost dried up and one...

The study takes a quantitative approach to test the determinants of commercial mortgage loan pricing at origination. The determinants include capital market risk, property market risks, mortgage terms and property characteristics. Taken into consideration of the endogenous factor between loan...