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A comment on Zillow seeks to sell 7k homes for $2.8B after flipping halt. Parent comment

Re:Zillow seeks to sell 7k homes for $2.8B after flipping halt by Kkoala on Tuesday November 02, 2021 @06:33PM (#29088415)
#1 is less risky, since mortgages have to be collateralized. #1 is also less volatile
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Re:Zillow seeks to sell 7k homes for $2.8B after flipping halt by pdonis on Tuesday November 02, 2021 @07:43PM (#29089101)
> #1 is less risky, since mortgages have to be collateralized.

Less risky, yes. Less risky to the tune of 5 or more percentage points? Not so sure.

> #1 is also less volatile

That depends on the housing market, which can be subject to large fluctuations that have nothing to do with the underlying value of the assets and everything to do with the availability of newly printed money for mortgage loans. The years leading up to and including the 2008 crash showed how volatile a manipulated housing market can be.

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