Icap, one of the leading inter-dealer brokers for the derivatives market, has expanded its property business into Asia-Pacific to tap into a perceived demand for indirect property investment in the region. Financial Times
Property derivatives have been increasingly used in more established property markets in the UK and Europe by investors keen to gain exposure to the illiquid asset class without needing to buy the properties.
More recently, property derivatives have also been used as a hedging mechanism to offset over-exposure to certain direct property markets that are suffering heavy losses.