Compared to broader financial markets and asset classes that are more correlated with the global macroeconomy, catastrophe bonds and insurance-linked securities are exhibiting significantly lower volatility in 2026, specialist investment manager Leadenhall Capital Partners LLP has highlighted.
With the conflict in the Middle East now set to move into its fourth week, the ramifications of the war and fears of the ultimate cost to the global economy is driving meaningful volatility in financial markets.
It’s not like traditional financial markets haven’t been volatile anyway over the last few years. But the attack on Iran, and its attacks on Gulf neighbours, have now meaningfully raised levels of stress and volatility in markets and asset classes, again resulting in investor focus on diversifiers.
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