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–?)
“It is a well-settled principle of the international code that where one nation owes another a liquidated debt which it refuses or neglects to pay the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt without giving just cause of war.”
—Andrew Jackson (1767–1845)
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)
“They say all lovers swear more performance than they are able, and yet reserve an ability that they never perform; vowing more than the perfection of ten, and discharging less than the tenth part of one.”
—William Shakespeare (1564–1616)