For a few weeks now we’ve been hearing rumours and receiving messages from contacts related to the fact the European Securities & Markets Authority (ESMA), a financial regulator, had restarted an exploration of catastrophe bonds and whether they should be an eligible asset for UCITS investment funds.
Previously, the European Securities & Markets Authority (ESMA), an independent European Union Authority, had looked at catastrophe bonds from a diversification stand-point.
As a result, ESMA’s so-called 20/35 diversification (or perhaps concentration risk) rule was applied to cat bond funds in certain domiciles.
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