A long way to go


Longevity derivatives have been the source of fevered market speculation for some time. The concept of trading longevity - or the risk that people might live longer than expected - is of particular excitement to some. The ability to lay off this risk seems like a silver bullet to pension funds and annuity providers in particular, which are smarting from exposure to steadily increasing life expectancies in the US and western Europe.

A report released in April 2007 by Pension Capital Strategies, th