Index- Based Futures And Options Markets In Real Estate

摘要: Most institutional and individual portfolios are very undiversified in real estate: many hold no estate at all, have holdings highly concentrated certain regions or types of estate. The risk these is not hedged. We propose here that cash-settled futures options markets be opened on to better allow diversification hedging, show solve problems hampered other hedging media the past. Related institutions, such as home equity insurance, might develop around markets. establishment likely increase quantity reproducible estate, lower rents It may also reduce amplitude speculative price movements dampen business cycle.