According to a recent commentary from Man Group, the global alternative and active investment manager, the rising frequency of rapid intensification is posing new challenges for catastrophe bond investors.
In its latest commentary, written by Andre Rzym, Partner, Head of Systematic Opportunities at Man AHL and Tarek Abou Zeid, Partner, Head of Client Portfolio Management at Man AHL, the company highlighted Hurricane Erin, the fifth named storm of this year’s Atlantic season, which intensified from Category 1 on August 15 to a Category 5 major hurricane just a day later.
“Rapid Intensification (RI) is the term used to describe a windspeed increase of at least 30 knots (kt) over a 24-hour period. In the case of Erin, the increase was 75kt, the fifth highest on record, and the informal term ‘explosive intensification’ captures what happened rather better,” Man Group explained.
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