Triggered longevity bonds found more effective in managing longevity risk.
Longevity bonds are financial tools designed to manage the risk of people living longer than expected. A study compared two types of longevity bonds and found that triggered longevity bonds are a better choice than continuous ones. This conclusion was reached by analyzing market trends and using a specific mortality model to calculate bond prices. Triggered longevity bonds are seen as more effective in dealing with longevity risk, both in theory and in practice.