Bricks and mortar

House price indices


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