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What can be done in derivatives on real estate?

April 26, 2017derivatives Real Estate

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What can be done in derivatives on real estate?

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In the case of real estate, derivatives can only follow clear asset securitisation. Government should work towards removing hurdles in the face of real estate asset securitisation, which would then enable derivatives on real estate to take place. Mutual funds which invest in real estate are another, easier, stepping stone towards derivatives on real estate: markets could easily trade units of such funds, and options on such units. This may be a shorter route towards obtaining derivatives on real estate.