Investment grade fixed income has historically been seen as a safe haven for investors but the total return on the Bloomberg Investment Grade Corporate Index for 2021 was -1.0% and US junk bonds now yield less than 4% with a projected 9% default rate.
fixed income
ESG means more than the environment
Monetising a life insurance policy which is no longer needed provides meaningful help to seniors who are struggling financially but not all seniors are aware of their options and of course some policies don’t have a surrender value.
Non-correlated assets are hard to find
Many strategies claim to be non-correlated, but the problem for investors is that it works until it does not work. Sadly, everything seems to go down together in a major market downturn – the very outcome investors try to avoid by investing in alternatives.
Life settlements – part of the alternative fixed-income universe
What are life settlements? Life settlements are life insurance policies which have been sold to an investor who pays the premiums and eventually collects the death benefit.
A steady year: Proven non-correlation
The Laureola (Bermuda Feeder) Fund returned 0.2% for December and 6.0% for the year. The Fund now has a 9-year track record and has returned 15% CAGR and 239% since inception.
What is a Life Settlements investment?
Imagine having the ability to benefit from the diligent financial habits of middle America.
Concerns as income-seeking investors weigh risk
The yield on traditional fixed-income instruments such as bonds might no longer be attractive for the risk involved. Government bonds yield less than 2 per cent interest in most countries and are actually negative in most of Europe.
How inflation-proof is your portfolio?
Investors face a dilemma. Should they prepare for inflation from too much money in the system, or deflation from the bursting of multiple asset price bubbles?