Abacus Life capitalizes on baby boomer wealth
The guest argued that Abacus Life is positioned to capture a massive, underpenetrated market in life settlements as baby boomers seek to monetize their assets.
The argument
The guest explained that 90% of life insurance policies lapse worthless, representing a massive addressable market. Abacus buys these policies at a high internal rate of return and sells them to private credit funds seeking uncorrelated, high-yield assets.
The thesis, stress-tested
✓ What validates it
- ✓Increased volume of life settlement originations
- ✓Continued demand and purchasing of these policies by private credit funds
▸ Risks discussed
- ▸Historical regulatory scrutiny and actions in the life settlement industry
- ▸Negative market perception stemming from short-seller allegations
- ▸Potential integration risks from recent corporate acquisitions
Hear it yourself
"So private credit funds are super hungry for these things because if you sell somebody, and also just at the current market clearing rate, Abacus is buying these policies for around a 14% internal rate of return, and then they sell them to private credit for about an 11 or 12%."
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