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.

Optimize your defeasance

Chatham Financial has executed over $100 billion total notional defeased, and returned over $169 million in residual value to borrowers.

View More
Rates have dropped—should you consider refinancing?

As rates fall dramatically, many borrowers consider the possible benefits of refinancing fixed-rate loans. CRE borrowers should consider refinancing floating-rate loans with embedded floors.

View More
Contact Chatham's Defeasance Team: 610.925.3120
Email Us
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.

View More
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.

View More
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.

View More
The Chatham defeasance calculator helps you understand your costs
Estimate Here
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.

View More
Get current treasury and
swap rates from Chatham
ChathamRates.com
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.

View More
Loading More...

Defeasance & Prepayment

Optimize your defeasance

Chatham Financial has executed over $100 billion total notional defeased, and returned over $169 million in residual value to borrowers.

Rates have dropped—should you consider refinancing?

As rates fall dramatically, many borrowers consider the possible benefits of refinancing fixed-rate loans. CRE borrowers should consider refinancing floating-rate loans with embedded floors.

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.