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Yet the claim payouts pale beside the hit that some European insurers took on their equity portfolios last year, (see table, below).
"If Facebook could have chosen to locate itself in an Opportunity Zone, like the Tenderloin in San Francisco, the investors would've paid no capital gains on their equity," says Parker, who presumably would have been one of the big winners.
Many banks want to sell their bonds to offset losses on their equity holdings.
But we also believe that investors and owners deserve returns on their equity.
"And if they can do that, when they are older, they can cut back on their equity allocation.
It involved selling stockmarket futures so that investors' gains in the derivatives market offset their losses on their equity portfolios.
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Companies sometimes allow employees to sell a portion of their equity on a secondary market prior to going public.
Credit cards that allow consumers to draw on their home equity loans are one such device.
Consumers have relied on their home equity to fund spending well beyond their wages, salaries and other income, and that equity is fading fast, especially for those with mortgages (see chart).
"The players view that as building on their sweat equity," Gimelstob said by telephone.
"Households have really been leaning on their home equity in an important way," Mr. Bostic said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com