Not exact matches
As calm
markets pushed
volatility to record lows, some strategies increasingly accepted bets
against calm
markets in order to fund
equity positions.
Another argument
against is that homeowners are already overweight
in real estate based on their home
equity, and that the
volatility of REITs is higher than the rest of the stock
market.
Under the PROFIT Strategy, net premiums are invested
in the
Equity Fund and the returns
in the fund act as a trigger whereby the profits are booked into a low risk debt fund to protect them
against market volatility
This means that more
equity will be required to remain sitting
in the home as a buffer for contingencies and as a protection
against market volatilities that would affect expenses and sales prices for defaulted HECM loans.