DERIVATIVES AND REAL ESTATE

Abstract

This paper aims to highlight the importance of application of derivates on the market of real estate.Although real estate is included in biggest markets of developed countries, the market of derivates of real estate is still low when viewed under the scope of trade and liquidity. In the past few years we have witnessed development of derivate instruments that are used by asset managers. In this sense problem of use the real estate derivates is particularly solved in risk management of real estate in developed European countries. In addition, special class of structured interest rate swaps has been analyzed as well as more efficient means of swap management.