A recent commentary from Neue Bank AG hailed catastrophe bonds as one of the most compelling financial instruments within the field of alternative investments, with the firm particularly emphasising their capacity to offer significant diversification opportunities for investors.
Neue Bank AG is a private bank based in Vaduz, Liechtenstein, specialising in personalised wealth management, investment advice, and financial planning.
“Catastrophe bonds (Cat Bonds) are among the most compelling instruments in the field of alternative investments. The market becomes particularly attractive immediately after the end of the hurricane season, as a large share of the global Cat Bond volume provides protection against hurricane events in the United States,” Neue Bank wrote in its commentary.
“From November onward, this risk is significantly reduced for several months. As a result, this period is especially favorable for entering the market: risk premiums remain in place, while the likelihood of severe storm events in the Atlantic stays minimal until early summer.”
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