"Where Do Secondary Market Annuities Come From?"

A Secondary Market Annuity is an existing, period-certain payment stream or lump sum sold by the original annuitant at a discount. It is this sale at a discount that creates a higher yield for the buyer.

The vast majority of SMAs were originally part of a structured settlement in a personal injury lawsuit. In a structured settlement, an annuity is purchased from a top-tier insurance company to fund the payments due to the plaintiff in compensation for settling the case.

We call it a “Secondary Market Annuity” simply because the existing, in force guaranteed payments made by the insurance company are transferred to a new payee, but on a secondary market basis.

You can learn more about structured settlement annuities, which are the assets that underpin the payments we make available as SMAs, on this website.

secondary market annuities explained

SMA Benefits

The most important thing to bear in mind with your clients is that Secondary Market Annuities (SMAs) offer all the benefits of a primary market period-certain guaranteed annuity from a top-tier insurance carrier. But as the seller is taking a discount, the end buyer’s yield is typically one to four percent higher than comparable assets.

Up Next

In the next post, we’ll give some more details about the legislated and court-ordered transfer process DCF Exchange utilizes to ensure that these payments are transferred to your clients smoothly, efficiently and irrevocably.

What our customers say about DCF Exchange

“These guys are the absolute best”

These guys are the absolute best! I’ve been working with Nathaniel and Ross for many years now, and there’s nobody better in the business. Their knowledge of the industry is unsurpassed, and most importantly they are HONEST and TRUSTWORTHY. I look forward to working with DCF Exchange for many years to come.

“I had an amazing experience with DCF

I had an amazing experience with DCF! Nathaniel and his team are extremely dialed into these specialty products and I definitely would work with him again! Thanks!

“Extremely knowledgable and ethical”

Extremely knowledgeable and ethical. A pleasure to do business with.

“How fast was that”

How fast was that? VERY!
I was most pleasantly surprised how quick and efficient my payment was processed. Very safe, efficient and accurate.

“Thank you for putting your platform…”

Thank you for putting your platform together. Very nice work, easy for everyone to complete transactions. Almost as easy as writing annuities was 20 years ago –you probably weren’t around when the entire annuity application was 1 sheet of paper, front and back. You could send in that one piece of paper with a check and the deal was done!