Archive for December 2010
Futures were quoted lower after today’s release of the Case-Shiller indices for October. 
The biggest changes in quotes were for those contracts that saw the biggest decline in the Case-Shiller index since last month. The CUS, NYM, and SFR offers … Read More
Many housing economists and traders prefer to quote home price changes in terms of HPA (annualized Home Price Appreciation). For a one-year holding period this is simply the (End Price/Begin Price)-1 expressed in percentage terms.
For longer periods one must … Read More
With the roll-out of the Nov 2015 contract, the CUS price curve has begun to take on a more bullish tone. While prices for 2011 do reflect the bearishness that most housing economists tout, prices for the longer-dated 2014-2015 contracts … Read More
A number of first time visitors to trading in home price futures may be curious as to why quotes reference the “Mid” rather than the “Close” price. After all if they are MBS traders they are used to seeing the … Read More
I’m trying to come up with new ideas to promote liquidity in the CME Home Price futures contracts. While there has been some trading almost every month when the updated Case-Shiller index is released, traders then go their own way … Read More
Time to review price moves since mid-Nov!
Nov ’10 quotes are off the board and as the Nov ’15 contracts are new, there are no price changes to discuss. The few contracts that have seen quotes for Nov ’15 expiration … Read More
One of the benefits of rolling out a contract for Nov. 2015 when the most recent data is the Nov. 2010 index release is that it makes for an easy, yet illustrative example of the power of compounding (and how … Read More
When I say it’s that time of year, I’m not talking about the change of weather, I’m not pining for eggnog, and I’m certainly not looking forward to TSA pat-downs.
No -this is the time of year when Wall Street … Read More
As I am still in my first year of market-making, I’ve learned that when the Nov 2010 cycle matured, a new November contract -the Nov. 2015 expiration – is rolled out. The thought of trading contracts for events that will … Read More
