Nordfang, Maj-Britt; Steffensen, Mogens - In: Journal of risk and financial management : JRFM 10 (2017) 1, pp. 1-23
This paper studies the optimal mortgage choice of an investor in a simple bond market with a stochastic interest rate … optimal investment strategy in terms of optimal mortgage choice. We conclude that certain extreme investors optimally choose … provides a better understanding of the complex and yet restricted mortgage choice faced by many household investors. In …