Housing Price 'Hedgelets' Unveiled

HedgeStreet Inc., San Mateo, Calif., has announced the introduction of Housing Price Hedgelets, which enable its online investors to hedge, or speculate on the direction of, home values in major U.S. real estate markets.The company said it is the first U.S. government-designated online financial market that lets traders directly buy and sell "innovative financial instruments" based on economic events. The Housing Price Hedgelets are tradable as both yes/no and variable contracts with three-month and six-month durations. They are benchmarked against the median sales price of existing single-family homes reported by the National Association of Realtors for Chicago, Los Angeles, Miami, New York, San Diego, and San Francisco, HedgeStreet said. "For most Americans, their home is their single largest investment and, as such, the desire to reduce risks surrounding that asset is important," said John Nafeh, the company's chief executive officer. "Housing Price Hedgelets provide a unique way for them to hedge against depreciation in the value of a home, or conversely, speculate on the degree to which housing prices will appreciate." The company can be found online at http://www.hedgestreet.com.