CMBS (commercial mortgage backed securities) are fixed rate, non-recourse loans that typically have a 5, 7 or 10 year term and a defeasance or yield maintenance prepayment penalty. These loans are pooled with similar loans, packaged into bonds and sold to investors in the secondary market. The CMBS market was formed in the early 1990s and has evolved into a mature, stable source of funding in the commercial real estate market. CMBS is an especially common source of financing for hospitality, retail, office and self-storage assets.