Investing - Theory, News & General • mortgages as negative bonds

If I have no mortgage, is my home equity now a positive bond?

Dats what i want to know.

Usually the negative bond idea equates to rather broad simplifications, where contractual payments and income roughly serve as alternate sides to similar trades. Typically if a borrower pays off a contract, there's no longer a borrower and lender relationship. On the other hand, when dealing in considerable simplifications, a paid off house could provide income or relatively fewer expenses compared to renting for some individuals. If one person wants to use an imputed rent framework, such as the ability to rent out property for income, I suppose it might be reasonable to label such a situation as bond-like. If someone else wants to consider their property as effectively amounting to a personal expense, similar to renting, I'd probably also be able to understand such a position. I tend to boil these discussions down as soft skills to some extent, and I tend to doubt how often people use the negative bond idea for discussing personal risk management. Basically I presume someone talking about 90% stocks probably isn't including their mortgage.

Statistics: Posted by alluringreality — Wed May 22, 2024 11:34 pm — Replies 55 — Views 2260

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