How to determine the risk, according to Nordea Bank
For Nordea, equity release risk was to be assesed by reference to the state of the waters you were going to swim in. If you preferred rough waters, you were in for a bumpy ride but if you were rather more cautious with your life-time savings, then your preference naturally would be calm waters, as in the blurred photo.
Well, no sooner than the product was signed up, the calm waters soon turned into a shockingly brutal storm where losses have reportedly reached 50% of the sums invested.
Excellent quantification of risk!
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