Author: Maurizio Pellegrini

Many investors in the life settlements asset class do not fully grasp the complexities underlying the asset before making the decision to invest in it. On its face, a life settlement appears relatively simple – it is effectively a negative carry, discounted cash flow asset that matures at some future point – not dissimilar to a zero-coupon bond. A closer look, however, reveals that life settlements are more complicated to acquire and manage than other comparable discounted cash flow assets. Hence, it is critical that careful diligence be undertaken before an investor makes the decision to invest in life settlements…