Goldman Sachs will launch warrants linked to the UK residential housing market tomorrow, the investment bank said in statement today.Goldman already sells equity-based warrants on the London Stock Exchange, as well as warrants linked to the gold price and oil futures, but this is the first time a dealer has linked the product to house prices.
Goldman will launch eight covered warrants and certificates linked to the Halifax House Price Index. Some will be linked to UK-wide prices, while others will be linked to the price of residential housing in Greater London. Property owners could use the products to hedge the risk of a fall in house prices.
“These new covered warrants and certificates will provide investors with an attractive means of gaining or hedging exposure to the UK and London residential property market,” said Mark Valentine, executive director in charge of UK warrants at Goldman Sachs in London.
Topics: Goldman Sachs
More on Equity Derivatives
Puts on UK's leading index rose 30% last week, with put/call ratio nearing historical high
Moves by CCPs to clear equity swaps leave market deeply divided
High roll costs and inefficient tracking spark shift
HSBC quant builds funding costs and haircuts into Black-Scholes option pricing formula
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.