There is no question that Ballantyne Re, a $2.1 billion securitization backed by future flows of insurance premiums, is an innovative structure that taps ABS market savvy to meet regulatory compliance. The real uncertainty lies in whether it can be repeated often enough to become a booming market.

Ballantyne Re priced last Wednesday, and will use the money to fund Scottish Re's capital reserve requirements under Regulation XXX. The regulations require far more capital than rating agencies think is necessary for life insurance companies to carry, said Sylvie Durham, a shareholder in the structured finance and derivatives practice of Greenberg Traurig.

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