This paper studies a household's optimal demand for a reverse mortgage. These contracts allow homeowners to tap their … home equity to finance consumption needs. In stylized frameworks, we show that the decision to enter a reverse mortgage is … reduces the risky portfolio share and is more likely to enter a reverse mortgage. On the other hand, if there is a large drop …

hedging with the stock market related VIX derivatives, especially hedging with DJUSRE would have decreased the price … contrast to using DJUSRE, we find that the hedging effectiveness of VIX against direct real estate exposure is trivial. Hence … standard stock market hedge instruments do not provide a safety net for hedging against the price risks in the U.S. real estate …

mortgage backed securities (MBS). The interest rate path-dependency is handled by an augmented state variable with discrete …

, the implied adjustments in capital charges could be reduced by hedging a credit derivative portfolio with a contrary …