Many thanks to the Network of Consulting Actuaries for organising this lunchtime’s presentation, also thanks for the kind words of support from our readers.
I promised two things.
First, a chart not showing the usual house price growing upwards and the loan value slowly overtaking it, but rather showing a possible negative scenario with HP falling and the loan catching up must faster. See the chart above.
Second, an updated spreadsheet showing the famous upper bound curve with ERM value. That would be here. The chart is already there, you can play with the values as you like. In the presentation I discussed how the ERM value would approach the upper bound as input volatility decreases, which you can do for yourself by changing input parameters in the yellow boxes.
The usual disclaimers apply. Have a good weekend. For me, time for some cheese on toast!