Catalyst launches 10pc-a-year income plan

The ARM Assured Income plan, which runs for ten years and pays an income of either 10pc per annum or 2.5pc per quarter, is an asset backed bond, linked to senior life settlement (SLS) policies. The bond is issued by ARM Asset Backed Securities (ARM), a Luxembourg-based special purpose vehicle managed by trust and fiduciary services group, Equity Trust. ARM will generate returns by purchasing SLS policies at a discount to their maturity value and pooling them together. It has also created an actuarial model to ensure that the pool is of a size and specification which diversifies risk. ...