Using home equity is
a risky financial move to make and is out of the question for many people given the current recession and «credit crunch».
Not exact matches
And while these levels remain well below what was seen during the
financial crisis, there's been an abrupt
move, and these banks are now regarded as significantly
riskier than they were just a few weeks ago.
Valuations of
risky assets are still stretched, and liquidity mismatches, leverage, and other factors could amplify asset price
moves and their impact on the
financial system.
Since the 2008 - 09 global
financial crisis, a broad array of
risky assets, including commodities, have tended to
move in lockstep during times of panic and heightened uncertainty.
To keep performance high, credit - focused managers are
moving back into some of the
risky assets that got tarnished during the
financial crisis like collateralized loan obligations, or CLOs, securities cobbled together from pools of corporate loans.
By
moving out of
riskier investments, you can help protect what you've accumulated over the years against the risk of a major downturn in the
financial markets.
The second result is that the least
financial literate households passive rebalancing (based on market
moves) is more important (64 % of the total change in the
risky share) compared to active rebalancing.
Valuations of
risky assets are still stretched, and liquidity mismatches, leverage, and other factors could amplify asset price
moves and their impact on the
financial system.
The bottom line: Liability coverage is your cheapest option and meets the legal requirement, but dropping collision and comprehensive coverage might be a
risky move if it would be a major
financial hardship to fix or replace your car after an accident.