Bricks and mortar

House price indices

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Issuers of UK house price index (HPI)-linked bonds (see box, p28) are facing a potential sea-change in their industry. With analysts increasingly predicting a prolonged slowdown in property price rises, potential buyers of short-term HPI-linked bonds could be hard to find as the risk increases of a bond maturing at nothing more than the original investment. Surprisingly, however, the HPI-linked market has so far been attached to simple, guaranteed upside-only bonds. But that may be about to chan