Market Comment

Now is an exciting time in the life settlements market. The market has still not recovered from the crisis and policies are trading at distressed levels. Activity is increasing in the marketplace and demand is slowly picking up, as major institutions are entering the market looking for portfolios at distressed levels. At the end of the day, investors must deploy their capital where they get the best returns compared to risk. Investors are currently investing with expected returns of 15% and above. The major life expectancy underwriters have validated their methodologies and updated their tables. With improved underwriting from a couple of specialist firms, expected returns are becoming more reliable and less volatile.