Ads
July 14, 2005
Derivatives of commercial property launched this week
Property derivatives are soon going to become a leading asset class as stated by inter-broker GFI group. Commercial property derivatives for Europe based on indexes run by Britain's Investment Property Data Bank (IPD) were launched by GFI and CB Richard Ellis last week. GFI is a derivative specialist and CB Richard Ellis is world’s largest commercial property firm. Managing Director for Europe at GFI, Ron Levi mentioned that since half of the world’s assets are in property, there is an absolute need to write derivatives. Investors who invest in property can use these derivatives to hedge existing portfolios or even increase exposure to property. This was made clear by Martin Samworth who is the managing director of CB Richard Ellis in the UK. Samworth also mentioned that CB Richard Ellis continuously introduces clients to derivatives market. Hedgefundsworld.com reports:
“Property derivatives comprise a swap under which the investor pays or receives a spread over the London Interbank Offered Rate (LIBOR) in return for the yield on an IPD index. Options are also being considered, Levi said.”
Read more: Property derivatives to become leading asset classe
--
Did you enjoy this post?
Comments
Post a comment
« Software solution for hedge fund management by Cogency | Main | Alternative investments to be part of HNI investment portfolio »
Syndicate
Comments