Catastrophe bond market is set for strong growth
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Significance As an alternative source of capital to traditional reinsurance, catastrophe (cat) bond issuance, a securitised type of insurance against catastrophe-linked losses, is reaching new highs. In the current low interest rate environment, there has been strong investor demand for these bonds. Impacts As natural disasters increase, the chance of a catastrophe occurring in these bonds' three-to-five-year lifespan rises, weighing on returns. If the number of natural disasters with a global impact rises, cat bond returns may become more correlated with other asset classes. More catastrophe bonds that meet ESG criteria are likely to be issued.
2021 ◽
Vol ahead-of-print
(ahead-of-print)
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2020 ◽
Vol ahead-of-print
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2019 ◽
Vol 25
(49)
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pp. 119-147
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2018 ◽
Vol 13
(6)
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pp. 1719-1731
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2020 ◽
Vol ahead-of-print
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2013 ◽
Vol 30
(1)
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pp. 27-31
2021 ◽
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(ahead-of-print)
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