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 U.S. is becoming an increasingly fatherless society. A generation ago, an American child could reasonably expect to grow up with his or her father. Today an American child can reasonably expect not to. Fatherlessness is now approaching a rough parity with fatherhood as a defining feature of American childhood.”
—David Blankenhorn (20th century)
“Let’s call something a rigid designator if in every possible world it designates the same object, a non-rigid or accidental designator if that is not the case. Of course we don’t require that the objects exist in all possible worlds.... When we think of a property as essential to an object we usually mean that it is true of that object in any case where it would have existed. A rigid designator of a necessary existent can be called strongly rigid.”
—Saul Kripke (b. 1940)
“A sentimentalist, my dear Darlington, is a man who sees an absurd value in everything, and doesn’t know the market price of any single thing.”
—Oscar Wilde (1854–1900)
“Kind are her answers,
But her performance keeps no day;
Breaks time, as dancers,
From their own music when they stray.”
—Thomas Campion (1567–1620)