Derivative advisory

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

Derivative advisory services

Leverage our expertise in hedging and derivative advisory services
Defeasance/prepayment & reinvestment

Utilize our expert analysis and advice to make informed defeasance and prepayment decisions
Valuation and analysis

Access advanced independent derivative valuation and analysis
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.

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.

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.

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.

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.

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.

Explore Capital Markets

Featured news

December 07, 2023

$10.68M refinance arranged for Phoenix multi-housing community

JLL Capital Markets arranged a $10.68M loan for the refinance of The Valencia Apartments, a 127-unit multi-housing community located in Phoenix, Arizona.

December 06, 2023

$18.625M financing secured for newly constructed apartment community in New Jersey

JLL Capital Markets arranged the $18.625M refinancing of 39 High Street, a multi-housing community in the Journal Square neighborhood of Jersey City.

December 06, 2023

Sale of landmark multi-housing community in suburban Indianapolis closes

JLL announced it has closed the sale of Carmel Center, a 322-unit multi-housing community located in downtown Carmel, Indiana within the Indianapolis MSA.

December 05, 2023

Fountain Residential Partners secures a commitment in co-GP equity from FrontRange Capital

JLL Capital Markets arranged a commitment in co-GP equity for Fountain Residential Partners’ growing pipeline of student housing developments.

December 05, 2023

Sale of open-air retail center in the Chicago MSA closes

JLL Capital Markets closed the sale of Aurora Commons, a 125,826-square-foot, open-air retail center located within the Chicago MSA in Aurora, Illinois.

Visit our newsroom