[aidaweb01]

Originally Posted by BlowFish »

The problem is that there is no easy way for spread betting companies quoting these products to actually hedge their exposure to the house price index. The flipside is that there is a huge degree of interest in these bets. 'We are very eager to get back into the house price market,' acknowledges Austin. 'We have a large exposure to the prices next March and would anticipate that once these figures have been released and the bets settled we will be back taking new positions again,' he adds.

I've just been into my IG account and it looks like I can go short.

That aside, I totally agree with GJ, making a market when it suits should be outlawed! When Ladbrokes first started offering books they were well known to 'investigate and offer a price' on anything (within legal and ethical boundaries) Thats how they made their name. If IG pull the plug on loss making products they'll quickly lose ground to a companies that don't! P*ssies indeed!

[atto]

Originally Posted by GammaJammer »

Fine - just mark the price way lower if you're long and worried. P*ssies. That's market making. They just don't like the money if it aint easy.

Yeah, that doesn't make much sense. I've never heard of a bookie shutting down a line because of overwhelming bets on one side.. just change the line (even if you have to change it a lot), and it will balance.

[BlowFish]

This baby looks interesting too http://etf.stock-encyclopedia.com/IUKP-LSE.html
Having trouble getting data for it into my charting package of choice but it looks like it might be useful.

[atto]

I'm all for shorting REITs to hedge, but watch out on possible hidden beta exposure. I believe (don't have the hard facts with me right now though) that REITs are more market sensitive than the actual housing market.

[BlowFish]

Thanks Atto, If I understand this correctly any company that complies with the appropriate regulatory requirements can get its self listed as REIT? Again if I have got things straight there is and index of all the REIT's (though I can't seem to find a ticker for that so wonder if its traded?) Interesting.

[minoo]

http://www.landecon.cam.ac.uk/resear...an-Swidler.pdf

[GammaJammer]

Originally Posted by atto »

I believe (don't have the hard facts with me right now though) that REITs are more market sensitive than the actual housing market.

Stands to reason as it's a long complicated process actually selling a house compared to trading a commoditised instrument.

[BlowFish]

Originally Posted by GammaJammer »

Stands to reason as it's a long complicated process actually selling a house compared to trading a commoditised instrument.

Which is precisely the appeal of the latter!!