Defeasance
Chatham Financial (Defeasance)
Chatham Financial is a financial risk management and advisory firm working with commercial real estate borrowers on defeasance, interest rate caps and hedging, and debt advisory, from its base in Kennett Square, Pennsylvania.
Its public site is organised around market rates and calculators: a tool to calculate the cost of interest rate caps that protect against rising rates on floating-rate debt, a tool to estimate prepayment penalties on fixed-rate loans using yield maintenance provisions, and a tool to calculate the cost of defeasing a loan by purchasing securities to cover the remaining payments. Market rate pages and rate updates by email sit alongside them.
Client-facing technology includes the ChathamDirect platform and an ONYX Pro subscription with its own login, plus an AI assistant the firm labels ChatFIN and warns can make mistakes. Securities activities are conducted by Chatham Financial Securities LLC or Hodes Weill Securities, LLC, both members of FINRA and SIPC.
Fees are not published. Confirm which entity would be on the engagement letter, and what a defeasance or cap execution costs, before you commit to a payoff or closing date.
Best for
Borrowers who need a defeasance run on a fixed-rate or CMBS loan, or a floating-rate borrower pricing and executing an interest rate cap, and owners who want to estimate a prepayment penalty first.
What they do
- Defeasance
- Interest rate cap procurement
- Interest rate hedging advisory
- Debt advisory
- Market rate data and financial calculators
- ChathamDirect platform
Details
| Attribute | Value |
|---|---|
| Memberships | FINRA and SIPC member firms (Chatham Financial Securities LLC; Hodes Weill Securities, LLC) |
What stands out
- Securities activities are conducted by Chatham Financial Securities LLC or Hodes Weill Securities, LLC, both members of FINRA and SIPC
- Publishes calculators for interest rate cap cost, yield maintenance prepayment penalties and defeasance cost