B. Riley starts alternative asset manager Abacus Life with Buy

B. Riley initiated coverage of Abacus Life with a Buy rating and $16 price target. Abacus is a leading alternative asset manager in the life insurance settlement industry, sitting at the center of the industry as not just one of the leaders but also as a market maker and technology provider, the analyst tells investors in a research note. The firm says a key advantage of its strategy is that the company has the flexibility to hold policies via one of its funds or to flip the policies to one of its capital providers and generate cash instantly. Riley believes Abacus can achieve attractive margins with an average spread of 20% on traded policies.