Hedge

The United Kingdom has what is arguably the most sophisticated market in the world for financing longevity risk . The market for pension buyouts is developing and the demand among pension sponsors to off-load longevity risk is srtong. The issue is that there is a relative lack of capacity or ability to meet the demand. Reinsurers are active in the buyout market but the capacity is limited, and the longevity derivatives markets are relatively illiquid when compared to more established...

Is a nasty inflation brewing or is the U.S. facing a prolonged deflationary period similar to what Japan has experienced for the past twenty years? Billions of dollars and major public policy decisions are currently positioned for both scenarios. The need for further deficit spending and low interest rates is advocated by Paul Krugman's "Phantom Menace" comments and a recent piece by Teresa Ghilarducci . The inflation is imminent camp is represented by gold bug and hedge funds that are building...

Putnam Investments CEO Robert Reynolds spoke about the notion of "lifetime financial product allocation" at a recent industry conference. Reynolds supports the notion of a range of products over the course of one's lifetime that include: Lifetime income options to hedge against longevity risk . Relative return strategies to hedge inflation risk . Absolute return strategies to deal with both inflation and volatility risk ( sequence of returns risk ). Reynolds offered comments on the over-...