More investors, arrangers and originators are asking rating agencies to look at securities backed by pools of life insurance policies.
Analysts at Standard & Poor’s Ratings Services, New York, have responded to the renewed interest by publishing a discussion of life settlement securitization risks.
Organizers of a typical life settlement securitization use life policy death benefits to make payments on debt securities.
Interest in life settlement securitizations flourished a few years ago, then cooled as investors and investment banks dealt with the effects of the credit crisis.
Now, interest in life settlement securitizations is starting to recover, the S&P analysts report.