As the catastrophe bond market continues to expand, these particular financial instruments continue to offer a sustainable opportunity for investors, while interest in private insurance-linked securities (ILS) is increasing as investors seek to further diversify within the asset class, according to Chris McAvoy, Head of alternatives research at JANA Investment

2025 saw a long-standing pattern reverse within the catastrophe bond market, as diversifying risks began offering spreads comparable or higher than those of traditional peak perils, while valuations between index-linked and indemnity structures normalised, Florian Steiger, CEO of Icosa Investments AG highlighted in a recent report. Steiger explained in the

Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has moderated its stance on catastrophe bonds from ‘strongly overweight’ to ‘overweight’. Despite this shift, the manager maintains that the asset class remains attractive. Meanwhile, the firm’s neutral stance on other insurance-linked securities (ILS), including private collateralized