PROPERTY DEVELOPMENT HEDGE STRUCTURE

摘要

A method for modeling a hedge structure that dynamically transfers financial and operating leveraged market risk between a real estate company and an investor as the real estate company's development projects go through the different risk phases of the development cycle resulting in market risk exposure changes.

主权项

1. A computer-implemented method for computing, hedging, and transferring adjusted market risk of both financial and operating leverage in real estate between a real estate company and at least one investor in a dynamic way, comprising the following steps:
calculating by a computer the overall specific leverage adjusted market risk the real estate company is exposed to at any time, structuring by a computer selected components of a Hedge Structure so as to effectively transfers risks from the real estate company to the investor, and matching, through the use of computer-based calculations, the return/risk characteristics of the internal components of the Hedge Structure to those of the real estate company's assets.