Goldman Sachs' ghoulish death bonds
Goldman Sachs had big plans to create a market for so-called death bonds. These are securitized life insurance policies that were sold by policy holders to speculators, who essentially are betting that the original policy holder will die soon enough to yield a profit on the policies. But BusinessWeek.com notes that Goldman's plans have hit a few snags. It still has not created a death bond, amid worries that anything securitized seems exotic right now. But the company is not giving up. Bear Stearns and Lehman Brothers also seem to be charging ahead. As Goldman's experience in hedge funds proves, its gilded name does not guarantee success.
- here's the BusinessWeek.com article