Real estate is an illiquid and inefficient asset class.
- Buying and selling real estate happens at a snail’s pace compared to trading in other asset classes.
- Without an accessible way to short, the market is subject to repeated bubbles and crashes.
During the real estate bubble of the 2000s, investors looked for ways to short the hot housing market. Without an easy way to short, investors used exotic tools with low transparency and high counterparty risk. When the market crashed, these tools intensified the financial crisis.
While regulators in the mortgage and banking industries have decreased fraud and leverage, investors still lack tools to help the market work more efficiently.
The tools investors need for smart real estate investing.
Down/Up Equity Trust Securities (duETS) add liquidity to the real estate market and create an efficient market by providing an easy way to take a short or long position, without counterparty risk. duETS allow investors to manage the risk of their real estate portfolio more effectively than ever before.
duETS were designed by long-time veterans of the index industry. The team drew on their experience with indexes, index technology and financial instruments such as ETFs, futures and options to build the best product for improving real estate investing.