My sense is that the best conditions for a home price index hedging market exist when you have:
- Pronounced different views on the future
- Recent history to color participants interest (or need?) in hedging
- A mindset that trading (or hedging, betting) is an acceptable activity.
No regional market satisfies these … Read More
The last day of trading for the Nov 2013 contract is Monday. (Recall that the Case Shiller indices will be released on Tuesday and that the Nov 2013 contract will settle on those numbers.) With only a few days to go I thought that I’d tweak quotes and post a … Read More
The weighting for Case Shiller composite indices (e.g. CUS 10-city, referenced in the CME contracts) may be adjusted 2- 3 years after the 2010 census, per the Case Shiller index methodology. I raise this notion to: 1) increase awareness, 2) minimize concern, and 3) invite those who better understand index … Read More
With the May ’13 expiration in just three weeks, and a handful of recent K13 trades (LAV, MIA, NYM), I thought that it might make sense to focus on front-contract markets.
The following table shows the recent history of each of the 11 traded CME reference indices as well as … Read More
The futures markets are generally unchanged after this morning’s release of the Case Shiller indices, although there is a mix of up and down markets.
I’ve posted prices that I’ve observed over the last 24 hours. (That is these are neither fed by the CME, nor are they live.) I’m … Read More
Anyone looking for short-term price volatility needs to review activity in the LAV (Las Vegas) contract over the last week. Futures prices shot up 2-3 points after the Case Shiller release on Wed. Dec 26 as the LAV index posted the biggest gain (of the ten CUS components) with a … Read More