A derivative that provides pension plans and annuity providers a hedge against the costs associated with rising longevity. The coupon payments on longevity bonds steadily decrease in correlation with the number of "survivors" in a given population. Eventually these payments reach zero. Also called survivor bond.
Related information about longevity bond:
- Longevity bond - Wikipedia, the free encyclopedia
Longevity bonds and longevity annuities are financial instruments or a form of insurance that bet against outliving ones savings through mortality rates.
- The Longevity Bond - Pensions Institute
Feb 18, 2005 ... n The Longevity Bond is the first financial product to offer longevity protection by ... n Payments under the Longevity Bond are based on the ...
- Longevity Bond Definition from Financial Times Lexicon
longevity bond. Life expectancy has steadily increased since the 1960s and is now among the key risks for pension funds, insurers and other companies that ...
- The role of longevity bonds in optimal portfolios
A longevity bond pays coupons which are proportional to the survival rate of a given population. In such a way the longevity risk becomes hedgeable on the ...
- RMS Models First Successful Longevity Bond
RMS Models First Successful Longevity Bond. Risk Management Solutions (RMS ) today announced that it has conducted the analysis for a new series of ...
- Swiss Re launches longevity risk bond | Reuters
Dec 2, 2010 ... A longevity bond has been tried before in November 2004, but did not succeed. BNP Paribas and the European Investment Bank's survivor ...
- Longevity bond pricing models - International Actuarial Association
these we considered the longevity bond as the most appropriate to hedge ... Later on, we calculate the risk adjusted market price of a longevity bond with a ...
- What is longevity bond? definition and meaning
Definition of longevity bond: A derivative that provides pension plans and annuity providers a hedge against the costs associated with rising longevity.