Catastrophe bonds, as an asset class exhibiting the rare property of price moves that are independent of broader financial markets, can be considered “the only true source of diversification,” according to Swiss private bank Banque Bonhôte & Cie.
Banque Bonhôte & Cie is bullish on the potential for catastrophe bonds to sit as part of its asset and wealth management offerings, the company runs investment funds and solutions for institutional clients, private clients and family offices.
It’s interesting to note how the Swiss private bank’s view on the fundamentals of catastrophe bonds has not changed particularly, but it is now all too aware that the return-potential of the cat bond asset class has risen significantly.
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