Author : Pablo Antolin
Publisher :
ISBN 13 :
Total Pages : 17 pages
Book Rating : 4.:/5 (129 download)
Book Synopsis Governments and the Market for Longevity-Indexed Bonds by : Pablo Antolin
Download or read book Governments and the Market for Longevity-Indexed Bonds written by Pablo Antolin and published by . This book was released on 2009 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and annuity providers. They would like to transfer longevity risk away to institutions better placed to deal with it. Unfortunately, there is a lack of financial instruments to hedge against this longevity risk, thereby complicating risk management by pension funds and hindering the expansion of the annuity market. Consequently, this paper examines the role of government in promoting a private market solution for longevity hedging financial products. Governments could improve the market for annuities by issuing longevity indexed bonds and by producing a longevity index. The paper argues though that this public policy role is hampered by the fact that governments are themselves are already exposed to significant longevity risk. However, governments could take other steps such as producing a longevity index.