According to a new report from specialist insurance-linked securities (ILS) manager Twelve Securis, as the investment environment within ILS continues to evolve and spreads normalise from recent highs, the margin for error is narrowing, making execution quality more important than ever.
The firm outlines that within this environment, sustained performance depends on deep research capabilities, a stable and independent View of Risk, careful contract design, disciplined portfolio construction and active capital rotation.
“Insurance-Linked Securities (ILS) remain a structurally attractive asset class. Yet the investment environment is evolving. As spreads normalise from recent highs, the margin for error narrows and execution quality becomes more important,” the firm’s report reads.
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