Canadian real estate investors who use variable rate mortgage financing assume a great deal of risk with regard to the cash flows resulting from the mortgage. These investors may wish to reduce the risk of rising mortgage payments without giving up the opportunity to benefit from lower mortgage payments. The introduction in the U.S. of trading in T-bond futures options and Canadian dollar futures options may allow investors to do this. The hypothesis of this thesis is that a real estate investor using variable rate mortgage financing can use T-bond futures options, possibly in conjunction with Canadian dollar futures options, to effectively hedge against the risk of rising mortgage payments. Chapters 2 and 3 examine the basics about futures and options, respectively. In Chapter 4, the duration based approach to hedging (i.e. risk reduction) with T-bond futures (and options) is explained. The rationale for the use of Canadian dollar futures (and options) is detailed in Chapter 5. Their inclusion in the hedge portfolio is based upon the interest rate parity theorem. A thorough literature review was performed. Chapter 6 contains a summary of the relevant theories exploring reasons why hedging may be beneficial. Empirical studies have been confined to the use of futures, rather than options. These are summarized in Chapter 7. / Business, Sauder School of / Graduate

It is the purpose of this study to explore regional variation in the source, allocation, and characteristics of residential mortgage financing in British Columbia. In order to do so, the study compares and contrasts mortgage funds from two groups of communities. The two groups of communities are representative of the Greater Vancouver area and the outlying, 'smaller' or non-metropolitan communities. While the outlying municipalities are generally referred to as 'smaller' than the Vancouver municipalities, this is not necessarily the relevant characteristic. What is perhaps more important is that the Vancouver municipalities fall within a metropolitan region and the others do not. This study finds that significant regional variation in mortgage financing characteristics does not exist in all cases. Nonetheless, there does exist some variation which seems to be the result of two factors: (1) the variation in lender-type from the metropolitan area to the non-metropolitan community and (2) the relative price of housing in Greater Vancouver versus the non-metropolitan communities / Business, Sauder School of / Real Estate Division / Graduate

published_or_final_version / Real Estate and Construction / Master / Master of Science in Real Estate and Construction

No description available.

Thesis (Ph. D.)--University of Hong Kong, 1999. / Includes bibliographical references (leaves 108-109).

The primary objective of the study was to develop a model which allowed banks to measure home loan risk and determine prices accordingly. A survey among banks revealed: 1. belief that the home loan market is more risky than 5 years ago 2. belief that lending in the "black" market is riskier than lending in the "white" market 3. no model is used which allows risk-measurement for the purpose of home loan pricing 4. mixed feeling as to the value of the proposed model - value, to a large extent, would depend on flexibility. A practical, flexible model has been developed which allows: 1. risk classification of loans in terms of geographical areas, product/client characteristics, and loan performance 2. risk measurement in terms of potential losses relating to each loan category 3. determination of appropriate pricing levels for each risk category. / Department of Economics / M. Com. (Accounting )

Thesis (M.A.)--University of Hong Kong, 2008. / Includes bibliographical references (p. 96-99).

Thesis (Ph. D.)--University of Hong Kong, 2009. / Includes bibliographical references (p. 262-277). Also available in print.

The primary objective of the study was to develop a model which allowed banks to measure home loan risk and determine prices accordingly. A survey among banks revealed: 1. belief that the home loan market is more risky than 5 years ago 2. belief that lending in the "black" market is riskier than lending in the "white" market 3. no model is used which allows risk-measurement for the purpose of home loan pricing 4. mixed feeling as to the value of the proposed model - value, to a large extent, would depend on flexibility. A practical, flexible model has been developed which allows: 1. risk classification of loans in terms of geographical areas, product/client characteristics, and loan performance 2. risk measurement in terms of potential losses relating to each loan category 3. determination of appropriate pricing levels for each risk category. / Department of Economics / M. Com. (Accounting )

published_or_final_version / abstract / Real Estate and Construction / Master / Master of Philosophy