A Hedge Fund Gambles on Death
Thursday, February 5, 2009 : PermalinkBusinessWeek – The market for exotic securities hasn’t entirely gone away. It’s just gone underground—-six feet under, to be precise.
Hedge fund Davidson Kempner Capital Management is plunging into life settlements—a market in which speculators buy-up unwanted life insurance policies from wealthy individuals looking to score some quick cash. The $10 billion New York-based fund is planning on selling so-called “death bonds” to overseas investors, as part of a plan to potentially raise cash to finance its life settlements acquisition business.
Tags: acquisition, bonds, businessweek, davidson-kempner-capital, davidson-kempner-capital-management, insurance, life insurance policies, life settlements, overseas investors, six feet, speculators, wealthy individuals
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