DISCUSSION PAPER PI-9910/A Survivor Bonds: A comment on Blake and Burrows
نویسنده
چکیده
This article offers a critical assessment of the “survivor bonds” (SBs) proposal recently put forward by Blake and Burrows, which calls for the government to issue bonds whose coupon payments are contingent on the proportions of retirees surviving to particular ages. It suggests that the proposal has considerable merit and discusses the circumstances in which SBs would be useful riskmanagement tools for insurance companies. It also discusses alternatives such as reinsurance, hedgingwith life contracts, dynamic hedging, and other forms of survivor derivative. Finally, it evaluates and rejects the argument that SBs should be issued by the state.
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