Death Derivatives Emerge From Longevity Risks

[Turbineguy]

Goldman Sachs Group Inc. (GS), Deutsche Bank AG (DBK) and JPMorgan Chase & Co. (JPM), which bundled and sold billions of dollars of mortgage loans, now want to help investors bet on people’s deaths.

Pension funds sitting on more than $23 trillion of assets are buying insurance against the risk their members live longer than expected. Banks are looking to earn fees from packaging that risk into bonds and other securities to sell to investors. The hard part: Finding buyers willing to take the other side of bets that may take 20 years or more to play out.

http://www.bloomberg.com/news/2011-05-16/death-derivatives-emerge-from-pension-risks-of-living-too-long.html

With what the repubs have in mind, this is a no-lose proposition.