Conduit CMBS loan vs SASB loan vs CLO

SASB is a type of CMBS. This can either be a true single asset (one large property) or a portfolio of properties owned by the same sponsor/borrower (more common to have these portfolio style loans). Underwriting/investing in these requires a lot more attention to individual property fundamentals.

CMBS post GFC often called CMBS 2.0/3.0 is a pool of loans backed by individual properties (conduit) or backed by a pool of individual properties and portfolio based loans (fusion). For A piece investors, credit enhancement/tenor is a huge factor in selecting which class to investment in. Beyond the typical classes of paper that get paid interest and principal, there are nominal pieces as well titled XA or sth of the sort that get paid an interest only. Structural features on these are different from the preGFC vintages. The role of B piece investors is different now, the servicers hold more power, etc. all regulations that help prevent another blow up in the face of investors.

CLO could be either RE CLO or CLO backed by corporate loans, another type is gaining a lot of traction recently … private credit CLOs. All of these have slight differences, but again come with credit enhancements (essentially just over collateralization). RE CLOs are just highly levered loans, often times on spec properties. Bank loan portfolio CLOs are different from private credit/mid market CLOs in terms of liquidity, risk profile, etc.