Defining Property Market Performance
To create a derivative there needs to be a point of reference for the performance of the market against which the derivative contracts are priced.
In the case of property derivatives, this reference is provided by the Investment Property Databank and the FTSE index in the United Kingdom, and NCREIF, S&P/Case-Shiller and Rexx in the United States.
The IPD Index and the FTSE UK Commercial Property Index Series provide a number of indices which relate to performance of commercial property. There are many indices reflecting sectors and sub-sectors of the commercial property market. To date, much of the interest in property derivatives relates to the UK market and its sub-sectors.
Read more about this topic: Property Derivatives
Famous quotes containing the words defining, property, market and/or performance:
“The industrial world would be a more peaceful place if workers were called in as collaborators in the process of establishing standards and defining shop practices, matters which surely affect their interests and well-being fully as much as they affect those of employers and consumers.”
—Mary Barnett Gilson (1877–?)
“By avarice and selfishness, and a groveling habit, from which none of us is free, of regarding the soil as property, or the means of acquiring property chiefly, the landscape is deformed, husbandry is degraded with us, and the farmer leads the meanest of lives. He knows Nature but as a robber.”
—Henry David Thoreau (1817–1862)
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)
“When a book, any sort of book, reaches a certain intensity of artistic performance it becomes literature. That intensity may be a matter of style, situation, character, emotional tone, or idea, or half a dozen other things. It may also be a perfection of control over the movement of a story similar to the control a great pitcher has over the ball.”
—Raymond Chandler (1888–1959)