Despite near-term headwinds, the US housing market remains one of the most resilient asset classes available to private investors. Home equity investments (HEIs) present an innovative route to residential home equity exposure that is both capital-efficient and scalable, while offering the potential for portfolio diversification, downside protection and enhanced risk-adjusted returns.
This report covers the investment opportunity in untapped home equity and the growth of HEIs in more depth. It also outlines why the current macroeconomic environment presents a unique inflection point for credit-oriented investors to invest in HEIs so they can:
• Gain exposure to a multitrillion-dollar pool of untapped home equity in a scalable manner
• Take advantage of near-term uncertainty in the housing market to create a favourable long-term investment opportunity
• Support mission-driven businesses that help average American homeowners strengthen their financial standing and offer additional options for improving their livelihoods without adding to their household debt.