VB Bhuyan & Co., LLC is a leading advisory firm focusing on the longevity and mortality risk markets.
Our primary goal is to educate institutional investors on the merits of this new asset class and assist them in building profitable, low risk, trading strategies.
As the 78.2 million US baby boomer population approaches 65, greater uncertainly is developing in the ability for social security and pension programs to fund people's retirements. Many seniors have turned to selling their life insurance policies to provide their own financial security. This has given rise to the $16 billion secondary life insurance market, which is estimated to grow to $160 billion within the next several years.
Moreover, dramatic aging across the US, Europe, Japan, and South Korea is putting tremendous pressure on governments and corporate pensions who are now looking to the capital markets for ways to hedge this longevity risk. This has given rise to the synthetic life markets, which allow investors to gain exposure to longevity or mortality risk.
These new markets provide a tremendous opportunity for investors to ride the demographic wave and capture returns uncorrelated to commodity, equity, fixed income, and real estate markets. Because a properly acquired life settlement is on the top of the capital structure, higher than AAA rated corporate debt or equity, and consistently generate substantial returns, life settlements and synthetic products should be a staple of any institutional investment portfolio.
Our primary goal is to educate institutional investors on the merits of this new asset class and assist them in building profitable, low risk, trading strategies.
As the 78.2 million US baby boomer population approaches 65, greater uncertainly is developing in the ability for social security and pension programs to fund people's retirements. Many seniors have turned to selling their life insurance policies to provide their own financial security. This has given rise to the $16 billion secondary life insurance market, which is estimated to grow to $160 billion within the next several years.
Moreover, dramatic aging across the US, Europe, Japan, and South Korea is putting tremendous pressure on governments and corporate pensions who are now looking to the capital markets for ways to hedge this longevity risk. This has given rise to the synthetic life markets, which allow investors to gain exposure to longevity or mortality risk.
These new markets provide a tremendous opportunity for investors to ride the demographic wave and capture returns uncorrelated to commodity, equity, fixed income, and real estate markets. Because a properly acquired life settlement is on the top of the capital structure, higher than AAA rated corporate debt or equity, and consistently generate substantial returns, life settlements and synthetic products should be a staple of any institutional investment portfolio.
Can Life Insurance Raise the Markets from the Dead?
VBB&CO featured in the Nov/Dec 2008 issue of Trader Monthly Magazine.
