Longevity Swap Market Developing Slowly
As reported earlier, a new derivatives market is evolving to deal with longevity risk.
Longevity swaps allow corporations and other pension plans owners to offload the risk of their plan participants living longer than expected.
The market for longevity swaps, however, has been developing very slowly. Only one deal has taken place this year.
Industry participants note that there is a slight backlog of deals and that roughly a half dozen deals should take place during the remainder of the year.
Source: The Independent
