Financial Guaranty
Broadway utilizes a type of financing that goes back fifteen years to when the mortgage capital markets were not yet mature and financial "wraps" or guarantees were used to secure capital. Even though it is a proven structure, our method of securing financing is radical in today's world of highly leveraged and structured mortgage instruments.
Using highly non-correlated assets or insurance products to create a fixed income hedge for our investors, we are able to create a financial guarantee program that allows us to raise capital for even the most distressed projects. Broadway's financial guarantee program can provide capital for real estate as well as new business ventures. Our program provides credit enhancement to those investors whose credit has been impaired or diminished. With a Broadway Capital guaranty in place it is possible to access credit at more traditional rates with standard terms.
For purposes of underwriting, we value the financial guaranty as an equity equivalent.
