The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Property derivatives: The tipping point

Are things finally starting to move forward in the much-heralded property derivatives market?

July saw the announcement of a new property derivative joint venture between Cushman & Wakefield and BGC Partners together with news that more banks are now providing two-way liquidity in such transactions in order to boost liquidity. Does this mean that the property derivative market’s time has finally come?

Unlike in other nascent derivatives markets, in property derivatives there is a natural base of buyers of protection: the property companies themselves looking to rebalance their portfolios. But until there is a significant correction in property values the number of people looking to actually reduce their exposure to property will remain substantially smaller than those looking to maintain or increase it. “There continues to be a significant volume of money coming into the sector, therefore this is an excellent time to adopt property derivatives as an investment strategy tool,” says Alex Dewey, manager, property derivatives at Cushman & Wakefield. “There are a number of commentators suggesting that the commercial property market is entering a state of uncertainty.”

It is now 18 months since the first public TRS on the UK IPD Index deal was written – a £40 million ($75.8 million) contract for difference between Prudential and British Land arranged by Eurohypo and Deutsche Bank.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree