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Financial markets are asset markets: that is, they are markets for streams of payments spread out over time.
Mr. Stein noted that the Internal Revenue Code previously imposed a stricter standard, requiring companies to use the 30-year Treasury bond rate in calculations that compare lump sums with streams of payments over time.
They also purchased streams of payments from lottery winners.
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The entities, in turn, guarantee the bond investors a steady stream of payments.
Cars are usually bought on credit, which means buyers are committing to a stream of payments into the future.
Conseco sells traditional life insurance, supplemental health coverage and annuities, investments designed to provide a stream of payments through retirement.
The donor gets back a stream of payments for life and can decide how to invest the trust assets.
Longevity insurance consists of an annuity whose stream of payments does not start until the retiree is well into retirement — say, 80 or 85 years old.
The attraction for the CDS seller, as with any insurance contract, is receiving a steady stream of payments for a risk it hopes will not occur.
The Texas teachers' pension fund recently paid Chicago to receive a stream of payments from the money going into the city's parking meters in the coming years.
Variable annuities differ widely, but in general they allow buyers to accumulate savings over a number of years, and then receive a stream of payments in retirement.
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