Securitized Risk Instruments as Alternative Pension Fund Investments

  title={Securitized Risk Instruments as Alternative Pension Fund Investments},
  author={Joanna Cummins and C. M. Lewis},
Recent years have seen the introduction of a new class of derivative securities based on "exotic underlyings" such as natural catastrophes and weather. This paper analyzes the pros and cons of these new securities as assets for institutional investors. It is argued that the underlyings on which these derivatives trade have very low correlations with other factors that move the investment markets, potentially enabling investors to shift the efficient investment frontier in a favorable direction… CONTINUE READING

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