Abacus Global Management (NASDAQ:ABL) announced that it successfully sold $50 million of securitized life insurance assets in a deal that was structured as an above investment-grade rated collateralized note.
The alternative asset management company said the innovative transaction enables institutional investors, banks, and insurance companies to gain direct exposure to life insurance assets via an uncorrelated rated structure.
The transaction closed on October 22.
"This solution provides institutional investors with direct access to the uncorrelated investment opportunity of life insurance policies through an innovative, highly-rated, and securitized structure,” Abacus Global Management CEO Jay Jackson said in a statement.
“This is a key milestone for our business and demonstrates our ability to create new institutional interest for life insurance assets.”
Abacus Global stated that the transaction demonstrates strong institutional demand for longevity-based assets that provide diversification from traditional market exposures, and mitigates risks associated with owning individual life settlement assets.
The company added that the note carries an above investment-grade rating and a mid-single-digit yield.