As the catastrophe bond market continues to expand, these particular financial instruments continue to offer a sustainable opportunity for investors, while interest in private insurance-linked securities (ILS) is increasing as investors seek to further diversify within the asset class, according to Chris McAvoy, Head of alternatives research at JANA Investment Advisers Pty Limited.
Writing in a recent article in Australian publication Investment Magazine, McAvoy explains that for two years, and well into a third, catastrophe bonds “have shone in an accessible, liquid and regularly priced market.”
“Now the question for institutional investors isn’t whether to maintain cat bond exposure, it’s how to evolve it,” McAvoy said.
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