Friday, May 4, 2007

ISDA publishes 1st property derivative definitions

(Reuters) - Property derivatives allow investors to take a view on the residential or commercial real estate markets without owning the underlying assets. Investors buy or sell swaps on property price indexes and get paid if the indexes exceed or fail to reach a specified level.

Correlation between real estate and other assets is low, making it a good diversification play or hedge against broad market declines.


Read more at Reuters.com Bonds News

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