Eres : Digital Library : Works

Paper eres2007_323:
Beyond Index-Based Hedging: Can Real Estate Trigger a New Breed of Derivatives

id eres2007_323
authors Lecomte, Patrick
year 2007
title Beyond Index-Based Hedging: Can Real Estate Trigger a New Breed of Derivatives
source 14th Annual European Real Estate Society Conference in London, UK
summary As index-based real estate derivatives are being introduced in Europe and the US, this paper questions the validity of these instruments for hedging risks involved in commercial real estate markets. It first examines the concept of index-based derivatives in the broader context of the history of derivatives and shows that this recent concept may not be appropriate for intrinsically heterogeneous assets such as real estate. Based on an innovative framework drawn from the field of biomedical sciences, it then considers several alternatives and concludes by proposing the establishment of a radically new breed of derivatives market that would enable effective hedging of commercial real estate assets.
series ERES:conference
discussion No discussions. Post discussion ...
ratings
session Session G5: Index Construction and Real Estate Derivatives
last changed 2009/11/19 09:01
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