Economics at your fingertips  

Governments and the Market for Longevity-indexed Bonds

Pablo Antolin () and Hans Blommestein ()

Financial Market Trends, 2007, vol. 2007, issue 1, 153-175

Abstract: Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and annuity providers. Unfortunately, there is a lack of financial instruments to hedge against this longevity risk, thereby complicating risk management by pension funds and hindering the expansion of the annuity market. Consequently, this paper examines the role of government in promoting a private market solution for longevity hedging financial products. Governments could in principle improve the market for annuities by issuing longevity-indexed bonds and by producing a longevity index. The paper argues that the first public policy role is hampered by the fact that governments are themselves already exposed to significant longevity risk. However, governments could take other steps such as producing a reliable longevity index.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (text/html)
Full text available to READ online. PDF download available to OECD iLibrary subscribers.

Related works:
Working Paper: Governments and the Market for Longevity-Indexed Bonds (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Financial Market Trends from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().

Page updated 2020-07-08
Handle: RePEc:oec:dafkab:5l4mbjf10kbv