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Q: Hedge against fall in UK House prices (eg covered warrants) ( Answered,   1 Comment )
Subject: Hedge against fall in UK House prices (eg covered warrants)
Category: Business and Money > Finance
Asked by: tenko-ga
List Price: $100.00
Posted: 29 Nov 2006 07:18 PST
Expires: 29 Dec 2006 07:18 PST
Question ID: 786550
I feel that UK house prices may fall in the next few years but don't
want to sell my house.  So I need to buy something that will increase
in value if prices do fall.  I have looked into covered warrants
traded on LXE but can't find any.  Goldman Sachs had some that expired
in August 2006 (G898) but I want to know if there are any live ones.
Failing that, an alternative.
Subject: Re: Hedge against fall in UK House prices (eg covered warrants)
Answered By: umiat-ga on 09 Dec 2006 20:03 PST
Hello, tenko-ga!

 UK carries some current issues of covered warrants. As
you will see from the website, you can select warrants utilizing
different criteria from the drop-down menu, and you can even be
informed of new issues via email if you'd like

UK warrants

"A drop down menu is now available to enable users to search for a new
issue on a specific underlying. It is also possible to find out the
new issues over different periods from either today, 1 week, 1 month,
3 months, 6 months, 2 years or 4 years. This information is available
by selecting the underlying and the period of time from the drop down
menus below."

Some examples of live warrants currently on the site:


13 Nov 2006  Dow Jones, NASDAQ-100 & Nikkei 225 DOW JONES, NASDAQ 100,


About Covered Warrants

Covered warrants are considered risky investments. You might want to
read a bit more about them by utilizing the following tutorial:

Incademy has another excellent online overview of covered warrants

"Covered warrants are exciting and have many advantages over other
forms of investment. However, it must be said that the mechanics that
allow for spectacular gains, can also allow spectacular losses. Price
movements for warrants can be very large - and very quick. So, extra
care is needed when trading these warrants.

Read more..........

2. What are covered warrants?

3. Comparison between corporate warrants and covered warrants

Keep going through all 27 pages!!!


 Hopefully, you won't have to worry about a drop in house prices too
much in your area of the UK. And if they do drop, it is always fair to
assume that by the time you decide to sell your house, the real estate
market will have corrected itself and gone back up in value once
again. I certainly understand, though, because I am in the same boat
at this point!

The latest news is quite encouraging!

U.K. House Prices Increased in November, HBOS Says," By Jennifer Ryan
and Craig Stirling. 12/7/2006

A good site for following UK housing price trends is House Price Crash! 


 Don't do anything too speculative unless you can afford to risk the
money you invest. Since you don't have to sell your house now, and it
is highly possibly that your house might continue to increase in value
over the next few years, be very sure about your investment strategy.

Best of luck!


Search Strategy

covered warrants UK
new issues of covered warrants UK
UK housing market
Subject: Re: Hedge against fall in UK House prices (eg covered warrants)
From: frde-ga on 30 Nov 2006 04:42 PST
If house prices do fall, then there will be negative knock on effects
throughout the economy. That makes hedging difficult.

I certainly reckon that with a few bumps in interest rates they will
cease rising, and to some extent fall, but probably not as
disasterously as Nigel Lawson's managed boom and bust in 1988.

Personally I reckon that GBP is grossly overvalued against both USD
and EUR, also that it is a good time to build up a wad of liquid and
non volatile assets.

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