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Defeasance is a process by which a borrower who had previously entered into a CMBS loan can unencumber themselves prior to the maturity of the loan. Defeasance is most commonly seen on prepayments of securitized CMBS loans. Rather than a simple prepayment calculation, the defeasance is really a substitution of collateral. A portfolio of securities, usually Treasurys, replaces the underlying real estate as the collateral and provides the payments to cover the debt service.

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Defeasance Calculator

Input simple terms including amount, interest rate and amortization to calculate your defeasance penalty. You can even shock the curve!

Yield Maintenance Calculator

Pensford's yield maintenance calculator is optimized for loans with monthly payments with analysis by amortization type and shock scenarios.


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