Investing in Life Settlements: Exclusive Access to Uncorrelated Returns
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Are low yields, interest rate risk, and credit risk in your clients’ bond portfolios putting their retirement goals at risk?
In this white paper, you’ll learn how an uncorrelated alternative asset like life settlements can help diversify your clients’ portfolios without the current low-yield, interest rate risk, and credit risk issues in the bond markets.
While high quality corporate debt offers the highest risk protection, the low-yields and potential interest rate risk limit its viability in helping clients meet their retirement goals.
High yield corporate debit offers significantly higher yields, but also significantly higher credit risk and default risk in poor economic environments.
Life settlements, in comparison, offer significantly higher yields without credit or interest rate risk as the underlying cashflows are uncorrelated to the economic environment. With proper actuarial expertise, a diversified pool of life settlement policies can provide stable long-term underlying cash flows that far exceed opportunities in the bond market.
Bond yields in the current environment are too low to offset market risk in equity portfolios and are subject to interest rate risk and credit risk.
Uncorrelated alternative assets like life settlements can provide higher returns and better diversification than low yielding bonds that are subject to interest rate risk and credit risk (unlike uncorrelated assets).