Current Market Conditions have Created a Window of Opportunity for LS Investors
As a result of the factors listed below, investors are able to acquire life settlements at very aggressive rates, which a eventual result is strong returns for the investors.
1. Fall out from the financial crisis In late 2008, caused capital of major institutions to evaporate while banks scrambled to straighted up balance sheets lowering activity, including the purchase of life settlements.
2. There has been an alteration in the tables that calculate life expectancies. Recently, life expectancy projections on average were raised and that had a significant impact on amount and formulatino of investment returns.
3. Distressed Portfolios. Many funds and investors find themselves with insufficient reserves to maintain premium payments in this current economic crisis.
4. The number of sufficient policies has exceeded demand in many markets, do to those markets having less money available. Investors have become much more selective and are in a position to “cherry pick” the best policies.
“The LS market rallied from 2005 until late 2008 when it hit the breaks along with the rest of the investment community. Investors now see a window of opportunity for increased returns given current market conditions and rates. Right now it’s a buyers market. There is no better time to consider the opportunity,” said MCC President, David Mickelson.
MCC projects, as more money comes in to the market and inventory is acquired, supply and demand will balance out and pricing will go up. Now is a time for investors to make inquiries, now while market conditions are optimal, and it is also a great time for individuals to have their policy evaluated.