منابع مشابه
Risk Based Capital and Pricing for Reverse Mortgages Revisited
Demographic change is happening in developed countries with an ageing of the population. Individuals are financing retirement increasingly from superannuation savings and less from government pension support. A major asset that individuals have to fund their retirement is the residential home. The reverse mortgage is a product that allows retirees to access the value of their home to provide fi...
متن کاملSecuritization of longevity risk in reverse mortgages
Reverse mortgages are becoming remarkably popular in the last few years in Australia, and although they have been around a lot longer in the United States, they are receiving renewed interest among the elderly. Increase in life expectancies and decrease in the real income at retirement due to inflation continue to worry the those who are retired or close to retirement. Today, financial products...
متن کاملContinuous Workout Mortgages: Efficient Pricing and Systemic Implications
This paper studies the Continuous Workout Mortgage (CWM), a two in one product: a fixed rate home loan coupled with negative equity insurance, to advocate its viability in mitigating financial fragility. In order to tackle the many issues that CWMs embrace, we perform a range of tasks. We optimally price CWMs and take a systemic market-based approach, stipulating that mortgage values and paymen...
متن کاملReverse Mortgages and the Liquidity of Housing Wealth
Housing wealth constitutes most of the non-pension wealth of the elderly population. This study analyzes the potential of reverse mortgages to increase the income and liquid wealth of the elderly by identifying households with relatively high levels of housing equity. Because this article looks at the whole distribution of elderly households and considers debt as well as income, it finds a larg...
متن کاملWoodhead Behavior and the Pricing of Residential Mortgages by
Option theory which has dominated residential mortgage prepayment and default research implies that a borrower will exercise prepayment or default options if the call option or put option, respectively, is "in the money" by some optimal amount. Empirical research provides evidence that the financial value of the call option is strongly associated with exercise of the prepayment option, and the ...
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ژورنال
عنوان ژورنال: European Actuarial Journal
سال: 2013
ISSN: 2190-9733,2190-9741
DOI: 10.1007/s13385-013-0071-y