Supply contract and portfolio insurance: Applying financial engineering toinstitutional timberland investment

The long-term growth of institutional timberland investments depends on the ability of timberland investment management organizations (TIMO) to deal e ffectively with securitization, leveraging, arbitraging, supply contracting , portfolio insurance, tax efficiency enhancement, and other issues. Financ ial engineering holds great promise for many of these issues. This study ap plies financial engineering techniques to two cases-supply contract and por tfolio insurance. We believe that the potential benefits of these and other applications can be great.