Pub. 7 2017-2018 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S July • August 2017 21 C apital markets are defined by Barron’s Dictionary of Banking Terms as “a financial market where corpora- tions and government agencies raise funds by selling stocks, bonds, and marketable securities with matur- ities greater than one year. Securities are distributed through public exchanges or through private placement sales to investors.” Commercial loans are a key category in capital markets, also known as com- mercial mortgage backed securities or “CMBS” for short the loans are sold to en- titieswhich thenmay repackage theminto larger groups and sell them to investors. They may stick with an original issuance or repackage them into another product suchas aReal EstateMortgage Investment Conduit “REMIC”whichpoolsmortgages and issues multiple classes of interests to investors.   continued on page 22 Capital Markets