The UK's commercial mortgage-backed securities (CMBS) market is enjoying a healthy rate of growth and a rapid tightening of launch spreads, according to analysts at Commerzbank Securities.

CMBS, or asset-backed bonds secured on mortgages on commercial property, fall into two main categories: multi-property - such as deals for Pubmaster or Canary Wharf and balance sheet transactions. The latter are similar to collateralised loan obligations, or CLOs, in which the originating banks offer senior bank loans, for example, loans secured on real estate, as reference collateral.