Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has updated its stance on catastrophe bonds from ‘overweight’ to ‘strongly overweight’ for Q3 2026, citing the asset class’s attractiveness, while its stance on other ILS remains unchanged at ‘neutral’
The second quarter of 2026 saw catastrophe bond and related insurance-linked securities (ILS) issuance hit nearly $11.33 billion, as a total 48 transactions came to market, making it the most active quarter for catastrophe bonds in the market’s history.
“Catastrophe bonds have continued to grow in 2026, supported by strong issuance, transaction upsizings and first-time sponsors, while manageable first-half losses have helped sustain favorable conditions,” Franklin Templeton explained.
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