Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has moderated its stance on the catastrophe bonds asset class slightly from ‘strongly overweight’ to ‘overweight’ for Q4 2026, which in turn has led the firm to shift its stance on the insurance-linked securities market to ‘neutral’.
At the same time, the firm’s neutral stance on other insurance-linked securities (ILS), including private collateralized reinsurance, retrocession, and industry loss warranties (ILWs), remains unchanged.
It’s important to remember that “overweight” on catastrophe bonds remains very positive and means the investment managers continues to see the opportunity in the cat bond asset class as meaningful for portfolios.
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