Specialist insurance-linked securities manager Twelve Securis has launched a new insurance-linked investment fund strategy that will primarily focus on Restricted Tier 1 (RT1) insurance debt instruments.
According to the firm, the new strategy, which is called The Twelve Securis Credit Fund, aims to deliver attractive risk-adjusted returns by investing primarily in RT1 debt issued by insurance companies.
Moreover, Restricted Tier 1 (RT1) signifies an expanding and attractive portion of the insurance credit market, providing an average of roughly 150 basis points of additional spread in comparison to insurance Tier 2 debt and about 200 basis points relative to corporate debt with similar ratings.
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