They mention 2 impacts of deflation. Can anyone explain if LTV is 67%, and if the value declines by 5% the equity will decline by 15%. Huh?
67 = Debt, 100 = Value, Equity = 33
Now value declines 5%
67=Debt, Value = 95, Equity = 28
28 / 33 = 84.8 % --> declined 15%
Super thanks CPK. obviously I need a break, as it sounds logical if you broke it down.
greetz from the dutchies.