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2012 REIT Capital Survey Executive Summary
March 20, 2012
Our fourth survey yielded responses from 28 public real estate companies. These companies represent over $200 billion in assets or roughly 30% of the entire REIT market, as measured by total assets. As an advisor to over 90 public real estate companies, representing roughly 70% of all US-based REIT assets, Chatham has a unique perspective on how REITS are funding themselves and managing resulting risk exposures. We hope this survey allows us to serve you better by providing greater insight into how public real estate companies are managing capital and financial risks in the current capital markets environment. Further, we hope to increase the depth of our understanding of your business, and the industry, to make us better advisors.  

2011 REIT Capital Survey Executive Summary
March 8, 2011
In its third year, the survey yielded responses from 39 public real estate companies, representing almost 40% of the entire public real estate market, as measured through assets. As an advisor to over 90 US public real estate companies, including 70% of REITs by total asset size, Chatham has a unique perspective on how REITS are funding themselves and managing resulting risk exposures. This survey is intended to leverage that perspective by offering insight on how REITs are approaching key areas such as capital sources, debt, budgets, forecasts, hedging activity, and investment plans.  

Evaluating EMIR’s Impact on the Property Sector
November 2010
This study details how the proposed EU rules on derivatives could take an estimated EUR 64.9 billion of working capital away from Europe’s real economy as property businesses risk being required to collateralize their interest rate hedges with cash. This is the main conclusion of a Chatham Financial study commissioned by the European property sector to assess the impact of the European Commission’s proposed European Market Infrastructure Regulation (EMIR).  

Interest Rate and FX Derivative Valuations in Accordance with FAS 157 (ASC 820)
April 2008 (Updated October 2010)
This paper discusses the process, methods and assumptions used to calculate valuations for interest rate and foreign exchange derivatives in accordance with the provisions of FASB ASC 820, Fair Value Measurements and Disclosures (formerly FAS 157).  

Best Practice Analysis of Credit Valuation Adjustment (CVA) Methodologies under ASC 820 (formerly FAS 157)
September 2010
This white paper provides a thorough analysis of the five identified CVA methods for both foreign exchange and interest rate derivatives and how each method performed during a recent 18-month period of significant market volatility. Building upon Chatham’s previous white paper that articulated how Potential Future Exposure (PFE) is the most accurate method to adjust for credit risk, this new study demonstrates that CVAs calculated using a PFE model exhibited less volatility than those calculated using any of the four current exposure methods.  

Summary of Key Issues from EU Derivatives Published Proposal
September 2010
After more than a year of incubation, the European Commission finally released a draft proposal of its derivatives legislation on September 15th, 2010. By and large, the proposal harmonizes with the U.S. Dodd-Frank bill with several notable exceptions including classification of companies into regulated and exempt entities.

The EU derivative regulation works in conjunction with several other pieces of EU legislation including the AIFM, CRD, and MiFID to form a comprehensive regulatory framework. The AIFM and the derivative regulation proposed today are still subject to final approval in the EU. While the CRD and MiFID are subject to review and potential revisions to bring them in line with the G20 spirit of more regulation for the derivatives market.

Although, the final shape and form of European derivative regulation will not be known until the end of 2012, the broad principals and outlines are in place and clients would benefit from understanding and preparing for the coming regulatory changes that could have significant impact on their business.  

Overview of OTC Derivatives Legislation
July 2010
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, an historic piece of legislation that will enact the most sweeping set of rules for the financial services industry since the 1930s. Following is a summary of one of the sections of the legislation that specifically deals with regulation of over-the-counter (OTC) derivatives. The summary is intended to be used to understand the key elements of the derivatives title and can be used as a quick reference guide for market participants.  

FASB Issues Exposure Draft Proposing Changes to Accounting for Financial Instruments and Hedge Accounting
June 2010
On May 26, 2010, the FASB issued an exposure draft detailing the Board’s proposed changes to the accounting for financial instruments. The proposed changes would significantly alter the current accounting for many financial instruments, including the application of hedge accounting. The scope of the proposed guidance covers all financial instruments, with limited exceptions in areas such as leases, equity method investments, insurance contracts, benefit plan obligations, and instruments classified in stockholders’ equity.   

Nine Improvements Needed in the Senate Agriculture/Banking OTC Derivatives Bill
April 2010
Title VII of the Wall Street Transparency and Accountability Act of 2010 (“the bill”) now reflects the merger of the bills reported out of the Senate Agriculture and Senate Banking committees. The bill relies heavily on text from Agriculture bill, which made discrete improvements upon the Senate Banking bill by offering a more clearly defined, albeit very narrow end user exemption. It also carried some features of the Senate Banking bill. The bill should be further strengthened by making nine important improvements that would recognize while implementing measures to address the problems revealed by the financial crisis, policy makers must strike an appropriate balance to ensure that the economy is not harmed.  

Rebuttal of Hedge Fund Attack on End User Concerns of OTC Reforms
October 2009
Point by point rebuttal by Chatham against a published document that attempts to persuade policymakers toward enacting legislation that would mandate central clearing for as many derivatives as possible.  

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