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April 24, 2010

Structured Settlement Payment Rights: "Insurance Cos. Buy Them In Secondary Market, So Why Shouldn't We?" Why Shouldn't Tort Victims?

"This transaction established a new, more liquid benchmark in the asset backed market which was underlined by strong investor demand from insurance companies, money managers and hedge funds.” Stefano Sola Chief Investment Officer for J.G. Wentworth, Philadelphia Business Journal April 23, 2010

If it wasn't out there it is now. Insurance companies ARE buying structured settlement payment rights in the secondary market through securitizations of portfolios like the one that  Sola referred to for $252 million that included both structured settlement and annuity backed receivables.

And those that are active in the trading of structured settlement payment rights, including one or two that are members of NSSTA and/or SSP say if the big boys are doing it why shouldn't our clients?  Despite the lack of industry standard, there is nothing illegal about it either.

Since it's not on the agenda at any of the trade association meetings, what are your thoughts?

Incidentally the J.G. Wentworth securitization has been referred to by JG as "the largest-to-date in the structured settlement industry". So there you have it, not the settlement purchasing industry but the "structured settlement industry".




 

 

 

Posted at 09:25 PM in In Force Structured Settlement Market Commentary and Discussion, J.G. Wentworth, Structured Settlement Payment Rights, Structured Settlement Securitization |

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