Property Derivatives - Uses of Property Derivatives

Uses of Property Derivatives

Property Derivatives provide the investor with the ability to:

  • Gain or reduce exposure to the property market.
  • Hedge a current position in the physical assets.
  • Change the composition of a portfolio quickly, i.e. switch out of Retail property and into Industrial.
  • Speculate on the property market

All of these objectives can be achieved without having to transact in physical property; synthetic real estate.

Read more about this topic:  Property Derivatives

Famous quotes containing the word property:

    “General education is the best preventive of the evils now most dreaded. In the civilized countries of the world, the question is how to distribute most generally and equally the property of the world. As a rule, where education is most general the distribution of property is most general.... As knowledge spreads, wealth spreads. To diffuse knowledge is to diffuse wealth. To give all an equal chance to acquire knowledge is the best and surest way to give all an equal chance to acquire property.”
    —Rutherford Birchard Hayes (1822–1893)