The Traderszone Network

Published in TZ Latest News 6 September, 2014 by The TZ Newswire Staff

Feel Like Betting On Life Expectancy? There’s A Derivative For That

Think CDS were the scourge of humanity, think again. As Pension360 reports, several Wall Street firms are selling securities backed by longevity riskthe risk that retirees receiving benefits will live longer than expected (and thus incur a higher cost on their retirement plan). As Ted Ballantine notes, ‘no one ever said Wall Street wasn’t creative’; but one wonders just how the banks are mitigating this risk…

 

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