The purpose of this document is to provide a framework for understanding best practices in marking debt to market for the purpose of financial reporting. This document is focused on clarifying policy and practice nuances related to debt valuation.

Here are some key benefits of utilizing an advisor on a lender-required swap.

Both yield maintenance and defeasance allow borrowers to unencumber the underlying real estate asset. From a legal and economic perspective, the two processes are fundamentally different.

Successor borrower rights are a material defeasance consideration, not just at the time of defeasance but at loan origination as well. This provision is often negotiable at loan origination and can play out in a variety of ways at execution. Chatham routinely supports the majority of principal...

Chatham provides daily valuations for tens of thousands of interest rate, foreign currency, and commodity derivatives. The interest rate derivatives valued include swaps, cross currency swaps, basis swaps, swaptions, cancellable swaps, caps, floors, collars, corridors, and interest rate options.

An FX option is an insurance policy, usually bought by way of a cash premium. It is deployed as a hedging strategy when flexibility is required and/or when its holder has a particular view on future currency movements.

Implementing a technology solution requires commitment across the organization and regular communication with your implementation team. Understanding existing internal workflows and business requirements is crucial in determining the appropriate system for managing and maintaining a debt portfolio.

The intent of this piece is to bring awareness to some defeasance pitfalls, and return leverage to the hands of borrowers.

Diversifying the asset base geographically and earning higher yield from investing in different jurisdictions may be financially and strategically important to debt fund managers. In so doing, general partners (GPs) are exposed to currency risk on the asset side of the fund’s balance sheet.

Interest rate swaps are one of the tools that commercial real estate (CRE) borrowers can use to manage the risk associated with floating-rate loans. Borrowers choose to purchase swaps with the rationale that they are “free”, especially when compared to an interest rate cap that typically requires...