House Price Risk - Some Risk Management Strategies

摘要: As property is the most valuable asset for many home owners, house price risk relevant to a large number of households. Two factors impacting this are high leverage on assets and volatility housing prices. This paper discusses different strategies management in three-step approach. First, eleven introduced discussed, focusing literature industry practice. Second, four basic (risk avoidance, retention, direct hedging indirect hedging) compared with respect their efficiency. Finally, success probabilities remaining seven strategies, all specific evaluated. The finds that there can be employed manage risk. However, not them available financial markets. Of these, approaches effective, index linked value insurances reinsurance receive highest possibilities primary secondary markets, respectively.