Property derivatives growth seen despite crisis
LONDON, Dec 9 (Reuters) - The global property derivatives market is likely to keep growing despite the financial crisis, as fund managers and property firms seek to better manage their real estate risks, experts said on Tuesday.
The fledgling market, which offers over-the-counter trading mainly in swaps based on property indexes, could grow by about 7 percent year-on-year to 7.5 billion pounds ($11 billion) by end-2008, said Rawle Parris, head of property derivatives at ING Wholesale Banking.
“It’s modest growth, but still quite good considering what’s happening in other real estate markets,” said Parris at the Global Property Outlook conference organised by Thomson Reuters.
Plans to set up exchanges as clearing houses for property derivatives could help promote the market as investors hunt for cheaper and more efficient ways to adjust their real estate exposure, he added.
Property derivatives growth seen despite crisis - Reuters.com
