There is an urgent need for education and information on property derivatives – most real estate people are unfamiliar with derivatives and traders and quants are mostly unfamiliar with real estate yet by the end of the second quarter of 2007, 20 banks were licensed to trade the international property indices of the Investment Property Databank (IPD) and 7 banks were licensed to trade the US NCREIF indices, moreover property derivatives were listed in London and Chicago in 2006. This book will plug the gap in knowledge covering all theoretical and practical aspects of the topic.
The book starts with a comprehensive introduction to the new instruments and provide an overview of the property derivatives market and the property indices. The second part will be an in-depth coverage of pricing, hedging and risk management, deepening the readers understanding of the market’s mechanisms and addressing pricing and risk management for the new instruments. The final part describes the numerous applications of property derivatives for portfolio managers, corporations and homeowners.
