Overdone expectations
Banks have set up dealing desks, brokers have formed joint ventures with property companies and end-users have attended countless educational seminars. The market for property derivatives is primed and ready to go. However, the predicted flow of deals has yet to emerge. What's holding the market back? Alexander Campbell reports
Property derivatives in the UK, the birthplace of that market, have been falling short of expectations. Growth has slowed since last year, and sector deals - trades based on the performance of one part of the market, such as offices in the City of London - have been few and far between.
The first UK property sector deal was completed by ABN Amro in November 2005 - a £60 million 15-month swap based
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