Just Don't Call it a Death Bond

Posted by: Matthew Goldstein on March 09

It seems hedge fund Davidson Kempner Capital Management may be a bit image conscious—especially when it comes to investing in life settlements.

Back in early February, Unstructured Finance wrote about a plan by the New York hedge fund to sell up to $1 billion in bonds to finance the purchase of life settlements, or unwanted life insurance policies. The hedge fund registered the unrated bond offering in Ireland under the name, “DK Life Settlements Acquisition Ltd.” But soon after that article appeared, the hedge fund changed the name of the offering to the more generic sounding: “Asset-Backed Securities Ltd.”

It seems hedge funds may have a lot of interest in gambling on death. So far, Davidson Kempner has amassed a life settlements portfolio valued at $235 million, according to the filing. But hedge funds just don’t want to draw too much attention to their plans.


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BusinessWeek's Adrienne Carter, Jessica Silver-Greenberg, and David Henry deconstruct the mysteries of high finance, Wall Street, and hedge funds for pros and ordinary investors. E-mail them directly if you've got tips about big deals, a hedge fund, or even securities industry gossip.

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