Optimism for property derivatives

Despite massive global real estate losses, the property derivatives market has been largely ignored, with trading activity focused almost exclusively in the UK. What are the prospects for growth in the asset class? By Peter Madigan

property-fund1

Property derivatives traders are optimistic. Despite notching up several years of growth prior to the financial crisis, the market struggled to reach critical mass, constrained by an almost uninterrupted increase in real estate prices. The collapse of the US subprime market, and subsequent nose-dive in property prices worldwide, has exposed the assumptions that drove the housing sector boom as flawed – and in turn, could spark greater interest in hedging risk, dealers hope.

Property derivatives

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

New investor solutions for inflationary markets

Geopolitical risks, price volatility, clashing cycles, higher interest rates – these are tough times for economies and investors. Ahead of the 2022 Societe Generale/Risk.net Derivatives and Quant Conference, Risk.net spoke to the bank’s team about some…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here