View from City Road: Tough task for BZW sales team
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Barclays is to be congratulated on its novel scheme to reduce its exposure to the UK property market. Where other attempts to market investment funds based on property have failed, such as the futures market and securitisation of single buildings, this new idea might just work.
BZW's sales team will nevertheless have an uphill struggle to sell their Property Index Certificates to pension funds and the like. The benefits to Barclays are clear - they hedge against any fall in the UK property market, and thus help to reduce the imbalance in the bank's loan book towards property.
But what's in it for investors? For bigger funds, probably very little. The certificates will be valued only annually, making this a pretty illiquid market. If you really want to get into the property market, surely it is better to invest direct?
For smaller funds, however, there might be advantages. For the first time it will be possible to buy exposure to the UK property market in relatively small ( pounds 250,000) packets, without all the costs and delay of buying property direct.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments