Standard & Poor's U.S. Structured Credit Roundtables
"Longevity Securitization Is Poised For Growth As New Investors Step Into The Market"
Longevity securitizations and longevity hedging are becoming more popular with investors for their potential yields, relative stability, and low correlation with other asset classes, according to panelists at a recent roundtable discussion hosted by Standard & Poor's.
Long the domain of insurers and reinsurers, financial instruments created to offset longevity-related risks – essentially, the risks of higher-than-expected payouts due to increasing life expectancies – are now attracting interest from pension plans seeking to mitigate these risks, as well as from investors such as hedge funds and alternative investment firms.