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
The property derivatives business is still growing, with £10.6 billion in deals so far in the UK - although the market continues to be reluctant to make trades based on property sectors.
BNP Paribas has closed the first Italian property derivatives deal with the UK property company Grosvenor.
Merrill Lynch and Axa Real Estate Investment Managers have executed the first French property derivatives swap.
Inter-dealer broker BGC has launched a property derivatives joint venture with Cushman & Wakefield, a US-based real estate group. The venture, called Cushman & Wakefield BGC, will provide strategic solutions and execution services across the European...
Tradition Financial Services (TFS) has become the latest inter-broker to enter the property derivatives fray.
Though the UK commercial property derivatives market appears to be finally taking off, barriers to liquidity and efficiency remain, said derivatives professionals at a seminar held by law firm Field Fisher Waterhouse earlier this week.