Life Settlements and Longevity Structures

Pricing and Risk Management

Business & Finance, Finance & Investing, Investments & Securities
Cover of the book Life Settlements and Longevity Structures by Geoff Chaplin, Jim Aspinwall, Mark Venn, Wiley
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Geoff Chaplin, Jim Aspinwall, Mark Venn ISBN: 9780470684856
Publisher: Wiley Publication: August 6, 2009
Imprint: Wiley Language: English
Author: Geoff Chaplin, Jim Aspinwall, Mark Venn
ISBN: 9780470684856
Publisher: Wiley
Publication: August 6, 2009
Imprint: Wiley
Language: English

Recent turbulence in the financial markets has highlighted the need for diversified portfolios with lower correlations between the different investments. Life settlements meet this need, offering investors the prospect of high, stable returns, uncorrelated with the broader financial markets.

This book provides readers of all levels of experience with essential information on the process surrounding the acquisition and management of a portfolio of life settlements; the assessment, modelling and mitigation of the associated longevity, interest rate and credit risks; and practical approaches to financing and risk management structures. It begins with the history of life insurance and looks at how the need for new financing sources has led to the growth of the life settlements market in the United States.

The authors provide a detailed exploration of the mathematical formulae surrounding the generation of mortality curves, drawing a parallel between the tools deployed in the credit derivatives market and those available to model longevity risk. Structured products and securitisation techniques are introduced and explained, starting with simple vanilla products and models before illustrating some of the investment structures associated with life settlements. Capital market mechanisms available to assist the investor in limiting the risks associated with life settlement portfolios are outlined, as are opportunities to use life settlement portfolios to mitigate the risks of traditional capital markets. The last section of the book covers derivative products, either available now or under consideration, that will reduce or potentially eliminate longevity risks within life settlement portfolios. It then reviews hedging and risk management strategies and considers how to measure the effectiveness of risk mitigation.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Recent turbulence in the financial markets has highlighted the need for diversified portfolios with lower correlations between the different investments. Life settlements meet this need, offering investors the prospect of high, stable returns, uncorrelated with the broader financial markets.

This book provides readers of all levels of experience with essential information on the process surrounding the acquisition and management of a portfolio of life settlements; the assessment, modelling and mitigation of the associated longevity, interest rate and credit risks; and practical approaches to financing and risk management structures. It begins with the history of life insurance and looks at how the need for new financing sources has led to the growth of the life settlements market in the United States.

The authors provide a detailed exploration of the mathematical formulae surrounding the generation of mortality curves, drawing a parallel between the tools deployed in the credit derivatives market and those available to model longevity risk. Structured products and securitisation techniques are introduced and explained, starting with simple vanilla products and models before illustrating some of the investment structures associated with life settlements. Capital market mechanisms available to assist the investor in limiting the risks associated with life settlement portfolios are outlined, as are opportunities to use life settlement portfolios to mitigate the risks of traditional capital markets. The last section of the book covers derivative products, either available now or under consideration, that will reduce or potentially eliminate longevity risks within life settlement portfolios. It then reviews hedging and risk management strategies and considers how to measure the effectiveness of risk mitigation.

More books from Wiley

Cover of the book Antiquity by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Trading by Numbers by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Trading as a Business by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book The Handbook of Conflict Resolution by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Anatomy at a Glance by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Teacherpreneurs by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Leading So People Will Follow by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Comparing Religions by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Personal Finance in Your 20s and 30s For Dummies by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Decoding Dao by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Chemoinformatics by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Laser Printing of Functional Materials by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Reptile Medicine and Surgery in Clinical Practice by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Sustainable Carbon Materials from Hydrothermal Processes by Geoff Chaplin, Jim Aspinwall, Mark Venn
Cover of the book Tatort Projekt by Geoff Chaplin, Jim Aspinwall, Mark Venn
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy