My original goal is setting up this site in 2010 was to foster discussion about the Case Shiller futures that trade on the CME (and where I am the independent market maker). With the pending launch of the RPX housing contract on the CBOE (for Thursday Feb 2), the growing interest in options, and the rise of “home price protection” products, I intend to expand this mandate to a broader discussion of home price derivatives. As before, my goal is to faciliate a better understanding by academics, regulators, policy makers, interested parties in housing transactions (e.g. buyers, sellers, lenders, MBA, NAR), rating agencies and traders, in the markets for home price products. Please feel free to email me with questions or suggestions at johnhdolan@homepricefutures.com . You can sign up for Twitter updates at @HomePriceFuture.
Basics: Using Calendar Spreads/ Implied HPA
February 20, 2012, 2:10 pm
I thought that the long holiday weekend might be a good opportunity to revisit a powerful tool -the use of calendar spreads. (The table and graph of hypothetical numbers will be used for illustration.)
Calendar spreads allow a traders to… Read More
LAX action -and steps for next week.
February 17, 2012, 2:31 pm
Following the two LAX trades on Thursday, it appears that traders have sharpened their pencils and have taken a critical look at LAX prices. Bids are higher, and offers are lower resulting in a curve that is historically tight by California… Read More
Basics: Measuring historical seasonality in indices to explain price curves on futures
February 16, 2012, 9:18 am
As a long-time viewer of Case Shiller forward curves I have to admit that the first quoted prices on the RPX contracts startled me. I had always known that different real estate indices had different degrees of seasonality, but the… Read More
