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Various forms of financial products - swaps, forwards, index-linked notes, and more - with cash flows tied to a real estate price index can be bought and sold, principally by institutions and sophisticated investors in the over-the-counter (OTC) marketplace. Transactions for most of these instruments (i.e., other than those governed by SEC regulations, such as index-linked notes) are governed by International Swaps and Derivatives Association (ISDA) agreements between the counterparties, with collateral posting governed by a Collateral Security Annex (CSA). Counterparties will be able to monetize or unwind trades by entering into offsetting positions or assigning trades to a participating dealer. Possible product structures include:
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