Catastrophe bonds are once again showing their value as a source of portfolio stability, with specialist cat bond fund managers Plenum Investments and Icosa Investments AG highlighting the sector’s calm performance despite growing volatility in broader financial markets tied to U.S. tariff tensions and macroeconomic uncertainty.
In separate updates, both Plenum Investments and Icosa Investments AG emphasised that the cat bond market has remained resilient, even as geopolitical and inflation risks weigh on equities and traditional fixed income.
In a letter to investors, Plenum Investments noted that cat bonds continue to act as a stabilising force, as they have during past crises such as the 2008 financial meltdown, the COVID-19 pandemic, and the interest rate volatility of 2022.
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