We examine the duration-driven trades of duration-sensitive strategic investors, i.e., pensions and life insurers. We use longevity shocks as an identification strategy. Longevity shocks affect these investors' liability durations and induce them to adjust their asset durations. When the...

We study the implications of longevity shocks for corporate bond markets, corporate debt financing and investment through the lens of life insurers. Longevity shocks shift life insurers' demand for bonds of specific maturities. When longevity increases, life insurance companies increase their...