Valuation of no-negative-equity guarantees with a lower reflecting barrier
This draft paper develops some of the thoughts in my earliest blog post on NNEG valuation. ABSTRACT: If the general level of house prices falls a long way, policymakers may introduce new policies which seek to support prices. This paper considers the effect of such interventions on the valuation of no-negative-equity guarantees (NNEG) in equity release mortgages. I … Read more