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:
“Art, if one employs this term in the broad sense that includes poetry within its realm, is an art of creation laden with ideals, located at the very core of the life of a people, defining the spiritual and moral shape of that life.”
—Ivan Sergeevich Turgenev (1818–1883)
“Crimes increase as education, opportunity, and property decrease. Whatever spreads ignorance, poverty and, discontent causes crime.... Criminals have their own responsibility, their own share of guilt, but they are merely the hand.... Whoever interferes with equal rights and equal opportunities is in some ... real degree, responsible for the crimes committed in the community.”
—Rutherford Birchard Hayes (1822–1893)
“The market came with the dawn of civilization and it is not an invention of capitalism.... If it leads to improving the well-being of the people there is no contradiction with socialism.”
—Mikhail Gorbachev (b. 1931)
“Nobody can misunderstand a boy like his own mother.... Mothers at present can bring children into the world, but this performance is apt to mark the end of their capacities. They can’t even attend to the elementary animal requirements of their offspring. It is quite surprising how many children survive in spite of their mothers.”
—Norman Douglas (1868–1952)