Is a loan with a higher LTV (e.g. 70%) less secured? │ Bondster

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Is a loan with a higher LTV (e.g. 70%) less secured?

Is a loan with a higher LTV (e.g. 70%) less secured?

September 22, 2024

No, it isn’t. With a higher LTV (combined with market volatility) there is a higher likelihood that a forced sale might be initiated. As a result, the investment might be terminated early, but the collateral ratio is not affected and investors always get their invested money back including interest for the entire period of the investment.


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