You are here: Home - News -

GS to offer investors covered warrants on UK property market

by:
  • 21/05/2003
  • 0
Investment bank Goldman Sachs (GS) is offering investors the opportunity to speculate on the housin...

Investment bank Goldman Sachs (GS) is offering investors the opportunity to speculate on the housing market without the commitment of buying a property.

GS is creating covered warrants and certificates linked to the property market and based on the Halifax House Price Index. Covered warrants and certificates are financial tools that give the owner the right to buy or sell an asset at a set price within a defined time frame.

Investors can choose between having exposure to the whole UK housing market or only in Greater London.

Mark Valentine, executive director at Goldman Sachs International, said: ‘These new cov- ered warrants and certificates will pro- vide investors with an attractive means of gaining or hedging exposure to the UK and London residential property market.’

Investors would be limited to a maximum loss of their original investment and there will be no exposure to Stamp Duty. Mark Graves, managing director of mortgage broker Mortgages Direct, said such products had a role to play, but only if they were sold to the correct target market.

He said: ‘The problem is that sometimes products do not end up getting sold to just that set of people.’ As such he hoped it would not become a mass-market proposition, and that brokers selling it would ensure it was appropriate for the clients taking it up.


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Advisers see increase in take-

Foreign climes are proving increasingly tempting for UK property buyers, and creating a growing...

Close