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Irish Being Offered A "hedging" Product

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http://www.thepost.ie/post/pages/p/story.a...2568-qqqx=1.asp

New hedging product for home owners

12 March 2006 By Eamon Quinn
World Spreads, the Dublin and London financial betting company, will launch a new hedging product next week that will allow Irish home owners to insure against the escalating cost of rising mortgage rates.
The contract, which will be called Irish House Prices on Fire, is designed to help safeguard home owners, first time borrowers and investors from the danger that the European Central Bank (ECB) will raise interest rates faster than expected.
It comes as Deutsche Bank warned that the ECB will raise interest rates to 3.5 per cent by the early part of next year from their current level of 2.5 per cent. Deutsche had previously said borrowing costs would peak at only 3 per cent.
Brian O’Neill, co-founder of World Spreads, said its new product could be used by anyone effectively to fix variable loan or mortgage interest rates without having to go to the bother of remortgaging through the bank.

This looks really good--speculate on inflated houses and lay a bet with the bookie to offset the losses when the market crashes. Someone has invented the risk-free gamble! Let's get in quick... :lol::lol::lol:

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http://www.thepost.ie/post/pages/p/story.a...2568-qqqx=1.asp

New hedging product for home owners

12 March 2006 By Eamon Quinn
World Spreads, the Dublin and London financial betting company, will launch a new hedging product next week that will allow Irish home owners to insure against the escalating cost of rising mortgage rates.
The contract, which will be called Irish House Prices on Fire, is designed to help safeguard home owners, first time borrowers and investors from the danger that the European Central Bank (ECB) will raise interest rates faster than expected.
It comes as Deutsche Bank warned that the ECB will raise interest rates to 3.5 per cent by the early part of next year from their current level of 2.5 per cent. Deutsche had previously said borrowing costs would peak at only 3 per cent.
Brian O’Neill, co-founder of World Spreads, said its new product could be used by anyone effectively to fix variable loan or mortgage interest rates without having to go to the bother of remortgaging through the bank.

This looks really good--speculate on inflated houses and lay a bet with the bookie to offset the losses when the market crashes. Someone has invented the risk-free gamble! Let's get in quick... :lol::lol::lol:

so how does it work and who or how do they make money??

How does this stop joe publis from losing?? surely if interest rates dont rise they are still paying these guys and their extortionate high morgage!!

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so how does it work and who or how do they make money??

How does this stop joe publis from losing?? surely if interest rates dont rise they are still paying these guys and their extortionate high morgage!!

It is effectively an insurance policy. They will probably have to buy a policy. Mr O'Neill will then hedge their collective IR risk using derivatives, and keep whatever cash is left over as his profit.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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