RBS’s new product, which will work effectively like a tradable tracker with a closing date, will offer flexibility in terms of both the direction of the market and the length of exposure, and could prove popular among more ambitious investors, perhaps buy-to-let landlords whose future pensions currently consist of large property portfolios. Questions – however – are bound to be asked about RBS’s own influence on house prices, particularly at a time when credit conditions are likely to be shaping the market. Should the lender be selling risks on a volatile market that it, possibly to an increasing degree in the next 24 months, controls?
Our publisher looks at a new residential property derivative, to be launched by RBS shortly.
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