Resources
White papers, case studies, and hedging strategy guides for commercial real estate borrowers navigating interest rate risk, defeasance, and prepayments.
Fund Level Hedging: Selling Back Caps and Floors
When discussing hedging options, collars and corridors are often common topics of discussion.
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?
Fund Level Hedging Series – Deferred Premium Caps
Institutional investors are increasingly looking for ways to be more thoughtful about how they protect their downside. Rather than treating every cap as a one-off expense at the asset level, many groups are rethinking how they hedge. One of the most overlooked (but valuable) opportunities is leveraging a fund level entity, whether for the benefit of a single asset or the entire fund.
Deferred Premium Caps
Given the constant chatter of potential hikes, many groups are reevaluating their positions and considering additional hedges. If you’re in that camp, a deferred premium cap is an alternative to consider, as it puts a ceiling on your rate without the need to call capital or use cash reserves.
What Strike to Buy
The age-old question!
Hybrid Hedging Strategies - Something to Consider
Balancing risk and protection off today's rate expectations.
Hedging Falling Rates
Falling rates is generally good news for CRE borrowers, but have you considered where you might be exposed as the Fed begins cutting rates?
Replacement Hedge Strategies - Part Two
Part two of this resource focuses on borrowers with bank debt where the bank has the ability to offer swaps and other derivatives.
Replacement Hedge Strategies - Part One
Many borrowers with upcoming hedge maturities wonder if there are alternatives to a vanilla cap that they should consider.