May 11, 2026 · What Is Defeasance? Defeasance is a financial strategy where a borrower nullifies debt by allocating adequate cash or bonds, removing it from the balance sheet.

Jul 1, 2026 · The meaning of DEFEASANCE is the termination of a property interest in accordance with stipulated conditions (as in a deed).

Defeasance (or defeazance) (French: défaire, to undo), in law, is an instrument which defeats the force or operation of some other deed or estate; as distinguished from condition, that which in the same …

Sep 21, 2024 · The defeasance process is when a borrower substitutes securities, such as government bonds, for the existing collateral on their mortgage loan, which is usually the home.

Mar 3, 2025 · Guide to Defeasance and its definition. We explain it with an example and compare it with yield maintenance and prepayment.

What Is Defeasance? Defeasance is a financial term that refers to the process of setting aside assets or cash reserves to discharge financial obligations. It commonly involves prepayment or retirement of …

What is Defeasance and How Does it Work? Defeasance refers to the replacement of the collateral of a loan with securities (generally fixed-rate government bonds) that will offer a lender an equivalent return.

Feb 20, 2020 · Typically, defeasance is a process through which a lender’s claim on collateral is eliminated. The borrower replaces the collateral with another security that is relatively risk-free, such …

Defeasance requires reserving cash or bonds to meet the debt, which effectively cancels the obligation. To achieve this, borrowers replace the original collateral of a mortgage with securities, typically by …

Commercial real estate prepayment & hedging,built for speed. Defeasance, yield maintenance, and interest rate cap pricing — all in one place, running on current Treasury and SOFR data.