Cat bonds & ILS increasingly compelling as essential diversifiers: Sage Advisory

Catastrophe bonds and insurance-linked securities (ILS) have transitioned from being niche alternatives to essential diversifiers, while their blend of uncorrelated event premia, low volatility, and robust risk-adjusted performance remains valuable in a landscape marked by macroeconomic uncertainty and concentration risks, says Sage Advisory Services.

Last year, Sage Advisory Services, the fixed income and alternative solutions manager, ventured into the ILS market for the first time, through its partnership with Cedar Trace Group, the Bermuda-based insurance, reinsurance and asset management specialist, that sees the two companies working together to create and deliver ILS-enhanced credit opportunities to investors.

Through its partnership with Cedar Trace, Sage is aiming to expand its range of investment solutions, as the company looks to offer investors new sources of return with low correlation to traditional capital markets and business cycles.

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