[lbo-talk] More ways to profit from death

[D. T. cochrane]

A fringe investment, the life settlement, which sees investors  
purchase life insurance policies from people who are dying, is being  
picked up by Wall Street as the newest vehicle for securitization.

"A bond made up of life settlements would ideally have policies from  
people with a range of diseases — leukemia, lung cancer, heart  
disease, breast cancer, diabetes, Alzheimer’s. That is because if too  
many people with leukemia are in the securitization portfolio, and a  
cure is developed, the value of the bond would plummet."

It's like something the Hollywood style corporate bad buy caricature  
would do.

http://www.nytimes.com/2009/09/06/business/06insurance.html