As the price of home and commercial real estate plummeted, hedge funds and pension funds have been tuning into how to curb losses and speculate on values of real estate using property derivatives. Activity in the instruments picked up during the last quarter of this year, principally as a result of their participation. Liquidity on the RPX, an index representing average home prices paid per square foot in metropolitan areas, saw 40% of its annual volume from September through November.
January 05, 2009
