Life settlements as an investment might have many of the prized characteristics that investors love about property.
fixed income
Income-seeking investors face painful reality
The yield on traditional fixed income instruments such as bonds might no longer be attractive for the risk one takes. Government Bonds yield less than 2 per cent interest in most countries and are actually negative in most of Europe.
Life settlements part of alternative fixed-income universe
Life settlements is a form of financing extended to an individual (usually a senior) backed by that person’s life insurance policy.
Laureola fund being used by Asian and European family offices to unlock investment paralysis
The struggles of fixed income instruments during the height of the pandemic in March and April 2020 raised questions about the widely accepted notion of negative correlation between bonds and equity.
Life settlements are resold insurance policies
While Bruce Lee is a strange source for fixed income strategies, his advice is apt for our low interest rates environment. Paraphrasing – “when rates are low, become the bank.” How so?
Bank hybrids recover value after March slide
Bank hybrids may not suit all income investors after a possible March 2020 ‘shock’. In March 2020, bank share prices halved and the underlying equity conversion risk was highlighted when the prices of the bank hybrids also fell about 20% from par.
Non-correlated assets are hard to find
The question for many about negative correlation 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 want to avoid by investing in Alternatives.