Chatham Financial has executed over $100 billion total notional defeased, and returned over $169 million in residual value to borrowers. Defeasance consultants are a part of Chatham's global real estate financial risk management practice, solving common but complex capital markets challenges for commercial and multifamily real estate investors.
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The major U.S. equity indices moved higher on the week as optimism over the prospects of the development of an effective COVID-19 vaccine buoyed investor sentiment despite rising tensions between...
Considerations around risk management start with economic factors. But REITs (as SEC filers) applying U.S. GAAP accounting must also contemplate financial reporting ramifications of hedging decisions.
Real estate market participants remain cautious, requiring significant areas of judgement in quantifying updates to cash flow modeling and discount rates.
Despite the disruption caused by the COVID-19 pandemic, the UK Financial Conduct Authority is still advising all market participants to prepare for a discontinuation of LIBOR at the end of 2021.
This summarizes the impacts that COVID-19 has had on repo markets and SOFR, how market participants have responded, and the possible implications of the economic slowdown on the LIBOR-SOFR transition.
When looking to understand the risk of negative interest rates occurring, commercial real estate (CRE) investors should take care to understand the motives behind central bank decisions.
An interest rate swap is a financial contract in which two parties agree to exchange distinct cashflows for a given period of time.
This update summarizes recent actions of the Fed, how those actions have flowed through to indicators of credit conditions, and how these changing conditions are impacting CRE interest rate caps.
Independent central banks exist to protect politicians from one of the oldest temptations of government: increasing their own money supply during times of economic stress.
Interest rate swaps are highly customizable and negotiable, and lend themselves to restructuring. This flexibility enables a cash-constrained borrower to amend and temporarily reduce payments.
For borrowers not facing immediate liquidity constraints, the current interest rate environment presents a compelling opportunity to restructure swaps to a lower coupon and longer duration.
Last week, Fitch downgraded the UK sovereign credit rating one notch to AA-, citing the inevitable increased borrowing which will be required to fund the stimulus.
Why are LIBOR and swap rates not following the central bank rates down? What is the status with LIBOR transition and should I continue to prepare? Read this week's European real estate market update.
Multiple standard deviation movements in currency rates since the COVID-19 pandemic unfolded has brought FX to the forefront. Here’s a list of common FX questions that Chatham has fielded.
As Treasury yields and LIBOR continue to decline, we have provided comments on a few frequently asked questions related to the expected impact of market volatility on debt valuation conclusions.
This past week saw no abatement to the market uncertainty and volatility that had characterized the previous two weeks.
The impact of the coronavirus on the global economy, equity, bond, and FX markets is immense. Currency markets have always been a barometer of financial market volatility.
Following last week’s interest rate cut by the Bank of England, GBP swap rates fell to all-time lows with the 5-year swap reaching 0.29% and the 10-year swap only one basis point higher at 0.30%.
The past month has provided the most volatile and concerning set of market conditions since the 2008 financial crisis. During the past 30-day period, we have witnessed a peak 25% decline in the S&P.