Derivative advisory
Interest rate risk management structuring, documentation, and pricing expertise to drive solutions and efficiency for our clients
Who we are
- We provide market participants with the most complete access to derivative products associated with hedging strategies to identify, measure and mitigate your real estate financing risk through bespoke technology and professional representation.
- Through the acquisition of Kensington Capital Advisors (KCA), JLL Capital Markets holds a unique position in the marketplace as an interest rate derivative advisory firm with a team of experienced professionals.
- Our unique behind-the-scenes understanding of the goals and pursuits of the financial institutions offering hedge products allows our clients to have the information necessary to negotiate contracts confidently in this market with any bank.
- As an independent derivative advisory firm, KCA is not affiliated with any other firm offering banking, legal, defeasance or derivative products. To maintain independence and client focus, we have no provider relationships that could influence our judgment – we offer complete objectivity.
- Kensington’s active bidding agent and valuation practice provides real-time insight into the capabilities of dealers and the requirements of lenders. This insight allows us to provide efficient and accurate indications of cost and execution pricing.
- Advanced technology is one of our primary differentiators and we offer clients direct access to a market-leading platform solution to manage the detailed information and ongoing workflow related to projects, financing documents, hedge agreements and reporting requirements.
Featured Solutions
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Derivative advisory services
Leverage our expertise in hedging and derivative advisory services
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Defeasance/prepayment & reinvestment
Utilize our expert analysis and advice to make informed defeasance and prepayment decisions
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Valuation and analysis
Access advanced independent derivative valuation and analysis
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Technology solutions
Take advantage of our state-of-the-art applications built on an enterprise scale platform.
Leverage our expertise in hedging and derivative advisory services
Utilize our expert analysis and advice to make informed defeasance and prepayment decisions
Access advanced independent derivative valuation and analysis
Take advantage of our state-of-the-art applications built on an enterprise scale platform.
Derivative advisory services
Risk analysis and quantification
Perform the initial diligence to identify risk components and quantify financial impact in order to ensure any hedging solution is as effective as possible.
Risk analysis and quantificationHedge/loan structuring and analysis
Optimize debt structure to eliminate barriers to hedge implementation or modify provisions that could increase loan cost.
Hedge/loan structuring and analysisInterest rate hedging
Manage risk through the implementation of hedging solutions that allow borrower to seek efficient financing solutions while managing risk externally.
Interest rate hedgingForeign exchange solutions
Evaluate and implement solutions to mitigate risk created through investment or borrowing in non-local currencies.
Foreign exchange solutionsDefeasance/prepayment & reinvestment
Structuring advice on prepayment/defeasance
Understand the mechanics of prepayment provisions in loan agreements and negotiate to maximize flexibility and minimize cost.
Structuring advice on prepayment/defeasanceAnalysis of prepayment/defeasance risk
Utilize our advanced analytics to make the most informed defeasance and prepayment decisions while continuously monitoring exposure.
Analysis of prepayment/defeasance riskHedging defeasance & yield maintenance risk
Manage exposure to fluctuating prepayment or defeasance costs through application of hedging solutions.
Hedging defeasance & yield maintenance riskBond proceeds and fund investments
Invest prefunded bond proceeds and fund balances to minimize cost, maintain flexibility and comply with tax requirements.
Bond proceeds and fund investmentsValuation and analysis
Derivative valuation and analysis
Access advanced independent derivative, debt and fixed income valuation and analysis through our state-of-the-art systems.
Derivative valuation and analysisValuation of debt instruments
Scalable debt and loan valuation solutions that account for each position using unique variables and data from JLL’s global debt placement practice.
Valuation of debt instrumentsPortfolio scenario analysis
Perform advance scenario analysis portfolio positions by shifting rates, volatility, time, or other factors either individually or together.
Portfolio scenario analysisTechnology solutions
Advanced debt management solutions
Track debt portfolio metrics, visualize data, receive custom alerts and interact systemically using an enterprise quality cloud-based application.
Advanced debt management solutionsAdvanced derivative valuation solutions
Receive automated valuation reports and analytics on a single transaction or portfolio of trades at any required interval.
Advanced derivative valuation solutionsCustomized portals
Take advantage of our customized portals for advanced debt management and derivative valuation solutions.
Customized portalsWorkflow automation functions
Automate routine tasks including calculation of debt covenants, derivative valuation and reporting, task alerts and reminders and document creation.
Workflow automation functionsFeatured news
River Ridge Shopping Center sells for $27M in Birmingham
JLL Capital Markets arranged the $27 million sale of River Ridge, a value-add multi-anchored shopping center in Birmingham, Alabama, to Gulf Coast Commercial.
Sacramento’s premier office tower trades for $117M
JLL Capital Markets closed the $117 million sale of 400 Capitol Mall, marking the largest office sale in Sacramento in nearly five years.
Colorado seniors housing portfolio trades for $30M
JLL Capital Markets arranged the $30 million sale of The Lodge at Greeley and The Lodge at Grand Junction, a 140-unit seniors housing communities in Colorado.
Debt and equity arranged for Berkeley student housing project
JLL secured construction debt and equity for The Valiant, an 83-unit, 262-bed class A+ purpose-built student multifamily complex in Berkeley, California.
Capital Markets at JLL
Our access to global capital combined with our financing expertise, renowned property insight and integrated research will give you the confidence to see the opportunities that others overlook.
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