A large part of the reason has been that bonds have provided an effective
hedge against equity risk.
This propensity towards negative correlation has made bonds a reliable hedge
against equity risk.
As milk prices have been forced down, many farmers have had to borrow
against the equity of their farms, but often without sufficient income to meet their repayment obligations.
But there is another reason to maintain a position in gold: Historically, it has been a cheap and effective hedge
against equity volatility.
Then they do things like trade theirs for a bigger home, or borrow
against that equity for one noble reason or another.
These loans are called second mortgages, since they allow you to borrow
against the equity built while repaying a primary mortgage.
After this type of lending was largely shut down in the aftermath of the mortgage meltdown, lenders are once again
lending against the equity in people's homes.
This is a variable rate loan that allows you to make
draws against the equity in your home, much like using the available credit on your credit card.
Among traditional equities, like the stock market, an investor has the opportunity to buy, sell, and even
bet against an equity.
Essentially a second loan or termed as «second mortgage», a home equity loan makes available
cash against equity without refinancing your first mortgage, and that too without any hassle.
We continue our tax - time chart series with a look at how municipal bonds help
manage against equity market volatility.
A bridge loan is a short - term loan
against the equity within a property the borrower already owns in order to purchase a new property.
Instead, the lender makes payments to the
borrower against the equity of the home until the property is sold, or the homeowners move or pass away.
Gold has been a very good portfolio hedge
against equity bear markets and periods of high inflation.
This allows these people to borrow further
funds against equity in the previously acquired properties, resulting in further acquisitions under tax subsidy.
As a result, typical duration - heavy bond funds may not provide as effective a hedge
against equity risk as they used to.
As a result, typical duration - heavy bond funds may not provide as effective a
hedge against equity risk as they used to.
Cash Out Loans: Banks are strongly against
lending against the equity in a property if the funds are going to be used for something other than improving that actual property.
This method offers versatility, liquidity, and leverage, and of course it gives the ability to
bet against an equity.
Generally, done to reduce the loan's rate of interest, or to acquire additional
cash against the equity in one's property.
In the years leading up to the real estate crash, easy financing helped people buy homes they couldn't afford and then
borrow against their equity as property prices rose.
We advocate a strategic allocation to government bonds, despite their low potential returns, as a
buffer against equity market selloffs.
Investors are looking for stability and diversification as a safety
net against equities... but some correlation [between bonds and stocks] lately creates confusion, «Desai asked.
Borrowing
against your equity lets you get exactly what you need, right now, and lets you pay it back later at reasonable interest rates.