On a relative basis, catastrophe bonds have rarely presented a more compelling investment opportunity than today, as despite spreads having tightened somewhat the cat bond asset class diversification offering can be at its strongest when other assets like equities are overvalued, fund manager Icosa Investments has said.
Previously, the investment manager has explained that with catastrophe bond spreads remaining at historically elevated levels, it sees an attractive entry point to the asset class for investors.
In its latest insight, specialist cat bond fund manager Icosa Investments has explained further reasons why it sees catastrophe bonds as a particularly compelling alternative asset class at this point in time, highlighting their diversification benefit and how that may be sought out at times of perceived overvaluation in other asset classes.
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