Longevity risk has existed as an asset class for quite some time but has primarily been the focus of larger institutions.
In a recent Financial Times article, the author discusses the recent proliferation of longevity and mortality related investment products.
The range of product options include:
- Life settlements, blocks of annuities, reverse mortgages and life tenancies.
- Longevity/Mortality swaps.
- Structured notes, including pass-through, principal protected notes, coupon protected notes and leveraged notes.
- Targeted population indices and broad population indices.
Source: Financial Times
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Anonymous replied on Permalink
Longevity Index
Can you provide some examples of existing longevity indexes?
tom replied on Permalink
Longevity Index
There are a few longevity indexes.
JPMorgan has something called the LifeMetrics Index.
Credit Suisse has a longevity index.
Goldman Sachs has an index that enables trading of both longevity and mortality risks: http://www.qxx-index.com/
Anonymous replied on Permalink
Longevity investment products
Are you aware of any longevity-based investment products such as mutual funds or ETFs?
tom replied on Permalink
Longevity investment products
To my knowledge, no retail products that are built off of or derived from these existing indexes.
Certainly a number of institutional products that have been developed.
I suppose there are ways to capture longevity exposure indirectly through other asset classes and retail products, but a separate conversation.