As the Baby Boomer population continues to age and the need for the securitization of life insurance policies increases, more financial institutions are looking towards longevity and mortality risk trading as a solution. There is a pressing need for innovative financial products and strategies that have the ability to hedge longevity exposure for pension funds, reinsurance companies, and governments. To fill this growing demand in the financial marketplace, products and strategies are being developed with the use of life settlements and linked securities.
Written for professional traders and institutional investors, Life Markets offers a comprehensive guide to the growing field of life settlements and linked securities. Life settlements offer innovative financial interactions for elderly individuals who sell their insurance policies to investors for a percentage of the coverage amount which is greater than the cash surrender value offered by the insurance company that wrote the policy. Given today′s volatile stock market, investors are finding life settlements and other related securities to be a safe haven that guarantees them solid returns and a stable financial future.
With Life Markets, internationally acclaimed expert Vishaal Bhuyan and a team of coauthors from leading financial institutions, hedge funds, actuarial firms, law firms, and universities provide a complete analysis of the life settlement market and show you how to trade with confidence in this burgeoning market. Comprehensive in scope, Life Markets covers a wealth of material touching on everything from the history of life settlements to making a transaction pricing, service providers, and exchanges. The book also explores regulatory issues and insurance company reaction, tax implications, and examines the ethical issues surrounding profiting from mortality.
Life Markets is the just–in–time resource that examines the myriad of issues surrounding longevity finance for anyone considering entering this dynamic market.
Foreword by Dennis Gartman.
Part One: Life Settlement Basics.
Chapter 1: A Brief History of Life Settlements (Vishaal B. Bhuyan).
Chapter 2: Features of Life Insurance (Vishaal B. Bhuyan).
Chapter 3: What is a Life Settlement (Dr. David Blake and Debbie Harrison).
Chapter 4: Parties Involved (Vishaal B. Bhuyan).
Chapter 5: Other Involved Parties (Vishaal B. Bhuyan).
Chapter 6: Underwriting (Michael Fasano).
Chapter 7: Life Insurance Policy Swaps (Vishaal B. Bhuyan).
Chapter 8: Premium Financing (Vishaal B. Bhuyan).
Part Two: Securitization.
Chapter 9: Life Settlement Securitization (Emanuel Modu).
Part Three: Analytics and Pricing.
Chapter 10: Life Settlement Pricing (I. James Cavoli).
Chapter 11: Using Life Extension–Duration and Life Extension–Convexity to Value Senior Life Settlement Contracts (Charles A. Stone and Anne Zissu).
Chapter 12: Real Options Approach to Life Settlement Valuation (Joseph R. Mason and Hal J. Singer).
Part Four: Risk Explored.
Chapter 13: Risks Associated with Life Settlements (Nemo Perera).
Chapter 14: The Risks of a Securitized Portfolio of Senior Life Settlement (Charles A. Stone and Anne Zissu ).
Chapter 15: Synthetics (Antony R. Mott).
Part Five: Regulation.
Chapter 16: Life Settlements (Boris Ziser and Joseph Selvidio).
Chapter 17: Regulatory Issues & Insurance Company Reaction (George J. Keiser).
Chapter 18: Tax Implications (Micah W. Bloomfield).
Part Six: Ethical Issues.
Chapter 19: The Ethics of Profiting From Mortality (David Blake and Debbie Harrison).
About the Author.