Catastrophe bond returns higher in 2015
Wednesday, 11 11 2015, Category: Insurance and Reinsurance, Country: World
Industry commentary surrounding catastrophe bond rates has suggested lately that market prices have reached a floor, but research from RMS reveals that returns in the asset class relative to risk values are actually higher this year than those seen in 2014.
One of the world’s leading catastrophe risk modelling firms, RMS, has said that investors in the cat bond market have experienced higher returns throughout 2015 than last year.
Recalculating expected losses within the market portfolio to take into account time-value money and seasonal variations, reveals that spreads have actually been higher this year, explains RMS.