Longevity swaps have had a breakthrough year. From a standing start, close to £7 billion of trades were executed by UK corporate pension schemes between May last year and February 2010. Further deals are in the pipeline, prompting some participants to predict the start of a thriving and liquid longevity market.
Not everyone agrees, however. The recent flurry of deals has more to do with market circumstances and the capital position of insurance companies, some argue. As conditions improve, the l