What if?

It maybe a generalisation (but a relatively accurate one) to say that UK and European end-users who deployed derivative strategies have had an overall positive experience from doing so. Their participation was mainly, and quite sensibly, as a hedger - being that they were “long” physical property and there were the beginnings of a consensus forming in ‘06 and ‘07 that UK commercial property might not be quite the iron-clad investment proposition it was for the two previous years. This piece is not to poke with a stick at those who did not hedge at the time. Actually not all the funds had achieved clearance to hedge back then, the volume “hedge-able” was not openended and of course the future of property returns was not as clear at the time as hindsight facilitates now. In any case, someone gets poked with a stick about hedging on page seven this month.

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source : Tradition