Life Settlement Synthetic Investment Opportunities

http://www.mickelsonlife.com Life Settlement Synthetic Investment Opportunities: David Mickelson, speaking to you today from Mickelson Capital Consulting, and our topic today is life settlement synthetic investment opportunities. Many of the largest investment banks in the world, some of the brand names youve all heard, have entered or will enter the life insurance synthetic settlement market. What that means is, is that they have lives theyve bought policies on, these investment banks, and then they are selling investments based upon how long that person lives, by essentially offering a synthetic insurance policy on the life of this person. So what an investor would be doing is trading the risk of default by an insurance company for the credit risk of the investment bank selling the artificial or synthetic policy to the investor. The reason this would be attractive to some investors is that it allows for diversification. An investor can buy many, many, many different lives, and spread their risk without spending hundreds of millions of dollars to own a huge portfolio of policies. The other side of that is that the yields are bound to be a lot less than when you buy individual policies. So in one sense, its simpler with a lower yield with more diversity. On the other hand you give up good returns, and you rely on the investment banker youre doing business with to be good on their promise. Thats synthetic life settlement investing in a nutshell. Its not for everybody, but its a good way to add extra diversity to a portfolio and to give peace of mind to people that dont necessarily want to invest a lot of money in any one policy. Thats the latest in the life settlement world. I appreciate your interest and thank you for your time.

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News & Politics

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• David Mickelson
• Life Settlement
• Synthetic Investment
• Mickelson Capital