Request: Debt valuation applications and best practices—borrower's perspective
The purpose of this guide is to provide a framework for applying the principles outlined in Chatham Financial’s white paper addressing debt valuation methodologies for financial reporting for financial liabilities held from the borrower’s position.
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Request your Q3 2021 Average Market Credit Spreads report
The information presented in this report represents average credit spread conclusions segregated by property type and grouped by LTV for the quarter ending June 30, 2021.Fixed mortgage spreads were moderately flat in Q3. However, debt mark-to-market had a slightly negative impact on equity fund...
European debt valuation FAQs
Debt valuation is important for any entity required to report fair value. Historically, there have been different valuation policies, methodologies, and opinions making comparisons difficult and leading to inconsistency. To facilitate transparency and confidence in the valuation of institutional...
Capital markets and accounting considerations in real estate M&A
Mergers and acquisitions involve a multitude of complexities and risks. Speed and accuracy at every stage of an acquisition is critical to not only winning the deal but also giving the transaction the best chance of financial and strategic success. Financial risk associated with the valuation of...
Debt valuation methodologies for financial reporting
Debt valuation has long been a topic of debate among entities required to report fair value. Because of varied interpretations of accounting standards, methodologies for valuing debt have ranged from simply reporting the remaining principal balance to an application of complex algorithms. This...
Volatility in the valuation of swapped floating-rate positions — a proposed solution
This paper demonstrates the shortcomings of the current market practice for valuing swapped floating-rate positions and proposes a solution that addresses why there should not be a meaningful valuation difference between fixed-rate loans and certain swapped floaters.
Valuation of properties under development
NCREIF’s Valuation Committee has provided guidance on a common question we hear from our clients: “When should I recognize entrepreneurial profit in the valuation of properties under development?”
Purchase price allocations in times of uncertainty
The purchase price allocation is a critical audit matter in accounting for a new acquisition. Amid a recession, the valuation of the land, building improvements, and leases in place of an asset requires abundant testing and reconciliation to ensure the conclusions reflect fair market value.
EPRA earnings and the requirement for debt valuation
Recent changes in the EPRA NAV measures have led many CRE borrowers to include a valuation on their debt portfolios. The following commentary summarises the changes, and how Chatham is assisting clients in this valuation and reporting process.