LAV -The quintessential region for home price index trading?

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

Basics: What If CUS Index composition weights change?

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