The great property price panacea

Property Derivatives

When property prices are rising there is little need to consider the risks.

However, following a period of five years in which US commercial real estate prices effectively doubled, the effects of the collapse in the residential subprime market are now being felt in the commercial market.

Structures for mitigating such price volatility risk have now gained renewed attention. In particular, focus has been cast upon the nascent property derivatives market.

Property derivatives are contracts that allow

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