Mortality bonds may be increasing in popularity, but the market is still in its infancy. Six mortality bonds in 20 tranches have been issued over the past four and a half years. Currently, there is USD1.8 billion in total limits outstanding. One mortality bond (Vita III Ltd.) was sponsored in 2007, generating more than USD500 million of risk capital. While it is clear that the mortality bond market is still young, it does show considerable promise.
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