Banks push into property derivatives market

The Investment Property Databank (IPD) reports volume increases of £2.9 billion ($5.75 billion) in the first quarter of 2007 – impressive growth since a total of £4.675 billion-worth of trades were done in the whole of 2006. Since the first issue of Liquid Real Estate appeared three bulge-bracket banks have opened totally new property derivatives desks or hired influential players to push their market position forward.

BNP Paribas has confirmed the opening of a property derivatives desk, a move that coincides with the high-profile hire of Andrew Jeyarajah from Tullett Prebon, which had linked up with DTZ to broker property derivative transactions.