Hacker News new | ask | show | jobs
by greyface- 1964 days ago
A bank, brokerage account, or index fund would have FDIC or SIPC insurance coverage.
1 comments
rootsudo 1964 days ago
It does not protect if the asset invested in goes down in value.

FDIC is protection against the bank being insolvent.

SIPC does not protect customers against losses from the rise and fall in the market value of investments.

https://www.sipc.org/for-investors/what-sipc-protects

link
greyface- 1964 days ago
There's no disagreement here. FDIC/SIPC protect against insolvency. The context of this discussion is borrower credit risk, i.e., the risk that the borrower becomes insolvent.
link