Who structures the defeasance collateral?
Structuring the portfolio of bonds for a defeasance is a complex task: strict guidelines govern how much cash may be included; month-end cash balances have limits throughout the life of the loan; and a large universe of bonds is available from which to construct the portfolio. Chatham Financial uses proprietary optimization techniques to structure portfolios of bonds such that they meet the Servicer’s requirements at the lowest possible cost to our clients. What bonds can be used to structure the defeasance collateral?
