White Papers
In-depth analysis and educational resources covering interest rate hedging, defeasance, prepayment strategies, and market dynamics for commercial real estate borrowers.
Fund Level Hedging: Forward Starting Swaps
A forward starting swap is when a borrower locks a rate today for a hedge that begins in the future.
Fund Level Hedging: The Buy/Sell Swap
Most lenders that require a hedge can’t actually provide one. When borrowing floating from a debt fund, Agency, or other non-bank lender, if there’s a hedge, it’s almost always going to be a cap procured from a third party bank. What if you’d prefer a swap though?
Declining Flat % Swaps
Borrowers comparing term sheets often come across two options with similar terms – a balance sheet fixed rate and bank floater with a swap.
Cancellable Swaps 201
Now, let’s look at a less common structure – a cancellable swap where the borrower sells the right to terminate in the future.
Cancellable Swaps 101
Banks are back, rates are up, many hold periods are longer, and the volatility continues. A common topic of discussion when our clients are evaluating bank swaps is “What term should I go with?”
Get Rid Of Your Escrows - Buy Through Maturity
Purchase a rate cap through maturity—preserve liquidity, reduce monthly escrows, and even recoup excess reserves.
Swap and Save 0.20% or More
Swaps have some benefits that are often overlooked.
Lower Your Swap Rate Today - Blend and Extend
Learn how to lower your swap rate today through the blend and extend method!
Transitioning Swaps to SOFR
If you’re a borrower with floating bank debt that’s swapped, you may be wondering what happens when you transition to SOFR.
Swaps 201 – Buying Out the Floor
Swaps 201 - Buying Out the Floor | Pensford, LLC
Swaps 101
A swap is a contract to exchange interest rate payments on an agreed-upon notional schedule. The most common swap is floating to fixed swap, usually LIBOR.
Bank Swaps vs CMBS Swaps
Each swap can be structured independently of financing to allow flexibility for things like notional amount, term, amortization, and prepayment flexibility.
Swap Invoice Explanation
Swap Invoice Explained: Swap invoices frequently cause confusion as they are billed separately from the loan. This resource clarifies the swaps confusion.
Regional Bank Swaps
Regional Bank Swaps
ISDA Negotiation - Why It's Important
The ISDA negotiation and Master Agreement covers payment obligations, representations, covenants, default events, early terminations, and transfer.