Interest rate rise won’t reduce allocation to ILS
Wednesday, 02 01 2017, Category: Insurance and Reinsurance, Country: World
After the U.S. Federal Reserve hiked interest rates in December of 2016 analysts at Morgan Stanley have said that the move wouldn’t result in a reduction in the allocation of capital to the alternative reinsurance market, as investors favour the sector’s diversification over its returns.
Some risk transfer market analysts and observers warned that any rise in interest rates could result in investors leaving the insurance-linked securities (ILS) market in hope of better returns in other alternative assets. But analysts at Morgan Stanley have said that this simply isn’t the case.