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Claira Announces Loan Contract Understanding & Analysis to Better Navigate Stressed Portfolios

As the commercial lending market continues to prove challenging, Claira’s next-gen AI provides in-depth contract analysis & loan covenant understanding enabling clients to more accurately manage risk, value, and reposition portfolios.


With many retail businesses, hotels, and office buildings closed or operating at a reduced capacity, rental cash streams have been significantly disrupted -- creating issues for owners of commercial properties and holders of commercial mortgage loans encumbering such properties. Under current conditions, borrowers, lenders, and investors need to intimately comprehend terms and conditions governing their particular loan(s) to identify issues and develop solutions.


Claira’s next-gen AI fully understands the details of CMBS cash management clauses and impacts on cash flows. Various CMBS product structures contain terms and conditions that stipulate how to handle cash generated from the underlying assets and who has control over the accounts, including covenants on changes if there is stress on the properties. Claira understands and interprets all the information described in the prospectus regarding these cash management covenants and makes them available for underwriters, investors, and traders.


Loan Insight Samples Include:

  • Establishment of Lockbox Account

  • Details of Cash Management Account

  • Cash Trap Trigger Events

  • Calculation Method for Debt Yield/DSCR Based Triggers

  • Property Characteristic Based Triggers

  • Impact of Cash Trap Triggers

  • Control Changes of Cash Accounts

  • Funding of Cash Reserves

  • Cashflow Waterfall Changes

  • Key Deal Attributes, e.g. Issuer, Dates, Identifiers, etc.


Claira accelerates loan covenant analysis for loan market participants and/or advisory/consulting service providers across bilateral, non-public documents that prove problematic for most other legal AI platforms requiring long lead-times to train their NLP (Natural Language Processing) models. Visit http://www.claira.io/cmbs-cash-covenant for more information on Claira’s Loan Covenant Insight Solution.


Require more custom analyses for your portfolio? Claira can be customized to meet your specific business and portfolio needs.


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