Basics -How to start trading CME Case Shiller futures and and options (for retail accounts)

After multiple inquiries, I thought that I’d pull together my responses of FAQs related to “how do I trade CME housing futures” into one blog (that I will update over time).  If anyone has ideas that would improve this list, please feel free to contact me (johnhdolan@homepricefutures.com).

Understanding Reference Obligations: Read More

Diagram to reflect changes in forward SFR markets

The graph below may be the best way of illustrating several  points that are key to understanding home price futures, as well as the current debate over home price expectations:

  1. All home price indices (including Case Shiller) measure events that have taken place a couple of months ago.  Since traders
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An alternative to “Fractional Interests”? (Package of CME Case Shiller Futures and T-Notes).

A number of fractional interest (“FI”)/ shared appreciation programs/ have been gathering steam (and funding) based on the assumptions of modest home price gains, paired with leverage (in the form of a homeowner’s mortgage).  The back-of-a napkin illustration is that should a home with an 80 LTV rise in price … Read More