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. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

US real estate derivatives take off at last

An opening of the market to more market makers should boost derivatives use.

The US real estate derivatives market has finally come to life after two years of missed opportunities that allowed the UK market to surge ahead. Now the National Council of Real Estate Investment Fiduciaries (NCREIF), which provides benchmark property indices in the US, is rapidly signing up new banks and expectations are high that deal flow will increase.

The US has some way to go before it can begin to challenge the UK, which kicked off the real estate derivatives market in 2004 and had transacted £7.6 billion ($15.15 billion) of notionals in 494 trades by the end of the first quarter of 2007, according to real estate information provider Investment Property Databank (IPD), which publishes the indices on which the UK market trades.

As Liquid Real Estate was going to press, as many as eight trades are thought to have taken place in the US since March – the exact number is uncertain because data is not yet published on deal volume.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

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