Hedging Risk In Real Estate

pionline_logoNeal Elkin of PIonline.com writes in A Better Way To Hedge Risk In Real Estate: “What if institutional investors, while increasing their allocations to both residential and commercial mortgage-backed securities, had been able to hedge their exposure to the underlying collateral?”

The author looks at some of real estate based indexes tracking U.S. property prices and the new derivaties that allow for hedging risks. Perhaps we will see this real estate derivates market become more active as a result of the current market conditions?