This one-day course has been designed to provide a good introduction to property derivatives for those people working in the commercial property investment sector who have little or no knowledge of any derivative markets.

The course combines an overview of the derivative markets in general, and their widespread usage across other asset classes, with a detailed explanation of current UK property derivative products; how they work, how they are priced, how they are used and how they compare with other more mainstream forms of property investment.

Course content

• Overview of derivative markets. Size and importance across other asset classes.
• Comparison of different derivative product types. Forwards, futures, swaps and options.
• Market structures and counterparty risk. Roles of banks and brokers.
• Property derivatives products. Total return swaps, all property and sectors.
• Pricing considerations and price history.
• Comparison of property derivatives with other forms of property investment. Advantages and disadvantages.
• Property derivatives market development & growth to date.
• Hedging, trading and asset allocation strategies. Current issues and limitations.
• Operational issues. Approval for use, documentation, accounting, tax.
• Trading game. Explanation, exercise and analysis.

Who should attend

• Fund managers
• Asset Managers
• Researchers
• Strategists

James Henry, 
Course Tutor, DSCPortfolio