Bricks and mortar

House price indices

house1-gif

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

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: