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.
Hedge/loan structuring and analysis
Optimize debt structure to eliminate barriers to hedge implementation or modify provisions that could increase loan cost.
Interest rate hedging
Manage risk through the implementation of hedging solutions that allow borrower to seek efficient financing solutions while managing risk externally.
Foreign exchange solutions
Evaluate and implement solutions to mitigate risk created through investment or borrowing in non-local currencies.
Defeasance/prepayment & reinvestment
Structuring advice on prepayment/defeasance
Understand the mechanics of prepayment provisions in loan agreements and negotiate to maximize flexibility and minimize cost.
Analysis of prepayment/defeasance risk
Utilize our advanced analytics to make the most informed defeasance and prepayment decisions while continuously monitoring exposure.
Hedging defeasance & yield maintenance risk
Manage exposure to fluctuating prepayment or defeasance costs through application of hedging solutions.
Bond proceeds and fund investments
Invest prefunded bond proceeds and fund balances to minimize cost, maintain flexibility and comply with tax requirements.
Valuation and analysis
Derivative valuation and analysis
Access advanced independent derivative, debt and fixed income valuation and analysis through our state-of-the-art systems.
Valuation 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.
Portfolio scenario analysis
Perform advance scenario analysis portfolio positions by shifting rates, volatility, time, or other factors either individually or together.
Technology 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 derivative valuation solutions
Receive automated valuation reports and analytics on a single transaction or portfolio of trades at any required interval.
Customized portals
Take advantage of our customized portals for advanced debt management and derivative valuation solutions.
Workflow automation functions
Automate routine tasks including calculation of debt covenants, derivative valuation and reporting, task alerts and reminders and document creation.
Featured news
Construction take-out financing secured for Northshore Commerce Center
JLL Capital Markets arranged construction take-out financing for Northshore Commerce Center, a Class A industrial portfolio in Saratoga Springs, Utah.
$102M financing secured for a Class A industrial portfolio in Florida and New Jersey
JLL Capital Markets arranged $102 million in financing for the Seagis Class A Industrial Portfolio in Northern New Jersey and South Florida, through Nationwide.
JLL’s Value and Risk Advisory announces additional growth to team
JLL's Value and Risk Advisory expands with Nikolas Rieser, Steven Cho, and Chad Rogers, boosting sector expertise and geographic reach across West Coast and Southeast markets.
Fully-leased Shops at Cross Creek trades in booming Fulshear submarket
JLL facilitates the sale of Shops at Cross Creek, a fully leased 24,188-square-foot retail center in Fulshear, TX, capitalizing on the area's rapid growth and strategic location in Houston's booming submarket.
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.
Featured trends & insights
The Melbourne location driving rental growth as offices recover
A corner of Melbourne’s CBD is ticking boxes for discerning tenants
Buyouts and mergers fuel data center boom
Investors are hunting for data center deals amid supply crunch in Asia-Pacific
Investors look to Sydney for co-living opportunities
Development is racing ahead of other sectors
Talk to us about managing financial risk
Get actionable real estate investment advice, insights, and expertise.