ABSTRACT
We have looked at short-term borrowing methods for property companies, and the different ways of hedging the interest rate risk that goes with them. At the opposite end of the borrowing spectrum, we now switch to the long-term sources of finance. Take as a starting point the mortgage debenture: the longest-term and most traditional way of raising debt finance via a security issue. It is worth examining in some detail because it conveniently illustrates a number of principles — particularly those relating to security — that crop up in different forms of property company borrowing.
