Ever-innovative capital markets are seeing the formation of new instruments – catastrophe bonds and longevity swaps – as actuaries lay off pension liabilities to quants willing to price the longevity risk of pensioners.
There are lots of obscure corners in the alternative investment space. Hedge funds have gone beyond traditional long/short or macro or arbitrage strategies, to make commercial loans. Now there’s a nascent but potentially burgeoning sector. Let’s call it depreciation on declining life expectancies.
