Financial Markets and Portfolio Management

, Volume 32, Issue 1, pp 111–113 | Cite as

Radu S. Tunaru: Real-Estate Derivatives: From Econometrics to Financial Engineering

Oxford University Press, 2017, 253 pages
  • Daniel RufEmail author
Book review

Despite attempts of academics, most prominently Nobel prize winner Robert J. Shilller, among them, to promote financial derivatives for real estate, this underdeveloped field of finance is still in its beginning. This is particularly surprising for two reasons: First, commercial real estate as well as residential housing has recently become an attractive investment class. Second, and even more important, the financial crisis of 2007–2008 revealed how house price developments, which are transmitted to market participants through residential mortgage-backed securities, can be a potential source of global financial instability. Hence, the need for financial derivatives to protect real estate investors and participants in the related mortgage market against falling property prices should be greater than ever.

Radu S. Tunaru’s book Real-Estate Derivatives: From Econometrics to Financial Engineeringsteps in to build a bridge between real estate as an asset class and related financial...

Copyright information

© Swiss Society for Financial Market Research 2018

Authors and Affiliations

  1. 1.Swiss Institute of Banking and Finance (s/bf) of the University of St. GallenSt. GallenSwitzerland

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