RT Journal Article
SR Electronic
T1 Lurking Pitfalls
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 83
OP 86
DO 10.3905/jsf.2007.690272
VO 13
IS 2
A1 M. Bryan Freeman
YR 2007
UL https://pm-research.com/content/13/2/83.abstract
AB In the relatively young history of the secondary market for life insurance, a great deal of attention has focused on the due diligence necessary to adequately gauge life expectancies. Still, many investors overlook various other life settlement transaction risks that have potentially significant consequences, including assuring that policies owned by trusts are saleable and otherwise what they seem to be, adequately following the patchwork of vastly differing state laws and regulations, potential misuse of the accredited investor exemptions of settlement regulation, and more. Thoughtfully manage and eliminate life settlement transaction risk through stringent due diligence procedures. Otherwise, even the simplest aspects of such a transaction may prove to be ticking time bombs.TOPICS: Credit risk management, CLOs, CDOs, and other structured credit, information providers/credit ratings