UCITS cat bond funds add $200m to AuM in January, near $9bn as a group
Catastrophe bonds in the UCITS format have continued to add assets under management (AuM) at the start of 2023, with a further almost $200 million gain in January, taking the combined assets of those cat bond funds tracked to almost $9 billion. The overall assets under management (AuM) of the main UCITS catastrophe bond funds has been […]
Cat bond market finds equilibrium as spreads stabilise higher: Plenum
Spreads in the catastrophe bond market, in terms of both new primary cat bond issuance and secondary marks, appear to have stabilised, signalling the market finding a new equilibrium at higher premiums, Plenum Investments has said. Zurich-headquartered catastrophe bond investment manager Plenum believes that spreads have now stabilised at their new higher levels. Recently issued […]
2023 an opportunity to invest in ILS on attractive historic yields: Cambridge Associates
Independent investment management giant Cambridge Associates LLC is bullish on the outlook for insurance-linked securities (ILS) investing in 2023, believing the higher yields on offer provide a good return opportunity relative to risk. But they caution that investors should review the ILS asset class on a regular basis. It’s sound advice from the investment giant […]
Risk adjusted cat bond yields seven times higher than 2016: Twelve Capital
Specialist insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital believes the catastrophe bond investment opportunity to be particularly compelling for 2023. Higher pricing of reinsurance and retrocession, alongside stricter documentation of coverage in cat bonds, means the sector has about the highest return potential in its history. These factors “Make the current environment an […]
Risk adjusted cat bond yields seven times higher than 2016: Twelve Capital
Specialist insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital believes the catastrophe bond investment opportunity to be particularly compelling for 2023. Higher pricing of reinsurance and retrocession, alongside stricter documentation of coverage in cat bonds, means the sector has about the highest return potential in its history. These factors “Make the current environment an […]
Collateral can be held too long for US wind ILW’s, study suggests
With the key January reinsurance renewals having been challenging and characterised by reduced capacity and higher pricing, the focus can often turn to buying hedges such as industry-loss warranties (ILW’s), but a new study highlights some issues investors should be aware of. The study by Kriesch Advisors, mandated by Swiss-headquartered capital markets risk transfer focused […]
Industry loss cat bonds show significant relative value: Twelve Capital
Given spread widening has been seen to be more considerable with index-linked, or industry loss triggered, catastrophe bonds, compared to indemnity deals, investment manager Twelve Capital says there is significant relative value in them and as a result it advises being overweight to the index trigger cat bond category. Twelve Capital, the Zurich headquartered investment […]
Industry loss cat bonds show significant relative value: Twelve Capital
Given spread widening has been seen to be more considerable with index-linked, or industry loss triggered, catastrophe bonds, compared to indemnity deals, investment manager Twelve Capital says there is significant relative value in them and as a result it advises being overweight to the index trigger cat bond category. Twelve Capital, the Zurich headquartered investment […]
Visualising higher catastrophe bond spreads & pricing
With reinsurance rates having hardened considerably, pricing in the catastrophe bond and broader insurance-linked securities (ILS) market has followed suit. In fact, the new reinsurance and retrocession pricing regime that has been installed through the January 1 2023 renewal season really became visible first in the catastrophe bond market, as Artemis’ data shows. Today, we […]
Visualising higher catastrophe bond spreads & pricing
With reinsurance rates having hardened considerably, pricing in the catastrophe bond and broader insurance-linked securities (ILS) market has followed suit. In fact, the new reinsurance and retrocession pricing regime that has been installed through the January 1 2023 renewal season really became visible first in the catastrophe bond market, as Artemis’ data shows. Today, we […]