Securitizing Life Settlement Investments

New Investment Opportunities for Hedge Funds

A recent New York Times article discusses how some investment banks are planning to securitize life settlement policies.  The article explains that there is likely to be a strong demand for such securities.  Much like the securitization of mortgages, life settlement securities would have different tranches which would have different risk profiles.

We have talked earlier about the definition of life settlements and about life settlement hedge funds.  Over the past couple of months I have talked with a number of people involved in this aspect of the alternative investment industry and it seems to continue to be quite a lively little niche.  I believe that if these investments are securitized, this new asset class will be attractive for some hedge fund managers – either as a central investment program or as a compliment to their current hedge fund investment program.

It will be interesting to see how this plays out and how the SEC and various states will react.


Other articles related to hedge funds and life settlements include:

Bart Mallon, Esq. runs hedge fund law blog and has written most all of the articles which appear on this website.  Mr. Mallon’s legal practice is devoted to helping emerging and start up hedge fund managers successfully launch a hedge fund.  If you are a hedge fund manager who is looking to start a hedge fund (including a fund focused on life settlement investments or premium finance), please call Mr. Mallon directly at 415-296-8510.

2 thoughts on “Securitizing Life Settlement Investments

  1. Pingback: Life Settlement Group to Educate Public on Securitization — Hedge Fund Law Blog

  2. M cooper

    Run away! Run away from these investments. Between the wife and I we have 14 policies after 4 years.
    We are starting to pay policy premiums already this year. With no one passing away yet.
    I calculated by the end of next year we will be paying ~$10K in premiums.
    The medical credentials of the individual evaluating these policies was to liberal and now we are stuck.
    So RUN AWAY from these fast.

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