The ability of insurance-linked securities investments to deliver a differentiated source of returns compared to broader capital market instruments remains primary in the list of motivations for investing into the asset class, analysis from Gallagher Securities found. In a recently survey of institutional investors, Gallagher Securities found that some 60% are intending

While catastrophe bond yields have declined from the highs seen between 2022 and 2024, analysts at Morningstar DBRS expect demand for the asset class to remain strong. Saying that, despite recent yield compression, the market continues to offer equity-like returns that are largely uncorrelated to traditional stock and bond markets.

A recent paper from investment manager Neuberger Berman highlights catastrophe bonds as a “very compelling opportunity” for investors seeking genuine portfolio diversification, which comes at a time when macroeconomic uncertainty and risk-asset volatility are expected to remain in focus for the foreseeable future. The investment manager observes that demand for