Defeasance & Prepayment

Defeasance calculator, yield maintenance calculator and debt prepayment guides and resources. Get the right information when structuring debt, refinancing, and prepaying maturing debt.

Defeasance? Ask These Questions.

Defeasance is the process through which a borrower is released from the obligations of its debt. The borrower purchases a portfolio of government bonds to serve as replacement collateral for the debt.

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Defeasance Pitfalls: What Borrowers Need to Know

While CMBS can be accretive to returns, it can also impair them; borrowers that refinance or sell mid-term will be forced to repay loans early, triggering a potentially painful exit.

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Defeasance Best Practices for Borrowers, Brokers, Counsel

Successor borrower rights are a material defeasance consideration, not just at the time of defeasance but at origination as well.

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Understanding Yield Maintenance

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.

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Defeasance FAQs

When deciding to prepay your fixed rate CMBS debt, whether through yield maintenance or defeasance, most borrowers have questions. View Chatham's list of yield maintenance and defeasance FAQs.

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Defeasance & Prepayment

Defeasance? Ask These Questions.

Defeasance is the process through which a borrower is released from the obligations of its debt. The borrower purchases a portfolio of government bonds to serve as replacement collateral for the debt.

Defeasance Pitfalls: What Borrowers Need to Know

While CMBS can be accretive to returns, it can also impair them; borrowers that refinance or sell mid-term will be forced to repay loans early, triggering a potentially painful exit.

Defeasance Best Practices for Borrowers, Brokers, Counsel

Successor borrower rights are a material defeasance consideration, not just at the time of defeasance but at origination as well.

Understanding Yield Maintenance

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.

Defeasance FAQs

When deciding to prepay your fixed rate CMBS debt, whether through yield maintenance or defeasance, most borrowers have questions. View Chatham's list of yield maintenance and defeasance FAQs.