Capital market products including SPIA securitized life settlement bonds and methods of issuing, servicing and redeeming same

摘要

Disclosed are novel capital market products, e.g. bonds, equities and like, employing a life settlement policy pool as collateral against repayment of principal. One embodiment is a securitized life settlement bond collateralized by a pool of about 800 senior life settlement policies each bearing death benefits expected to mature within the bond term. At least one single premium immediate annuity ("SPIA") can be employed to securitize the coupon payments on the bond. Also, an investment instrument, optionally an impaired-risk SPIA can be used to securitize and guarantee the policy premium payments for the life of the insured. Included are methods of pre-funding the costs of supporting the issued bond to make the bond bankruptcy-remote and eligible for a high rating.