Insurance Risk
Cat Bonds: New Ingenious Instrument for Leading Corporate Companies?
Créé le
28.06.2021Emerging as a key asset class in providing a new socially responsible investment, the catastrophe bonds offer significant attributes for investors such as its uncorrelated risk-adjusted returns. Initially designed by and for the insurance industry and while it brings concrete benefits, its application by corporate companies is new and far from being widespread.
Our contemporary financial market is defined by its global and volatile business environment and, of course, its technological breakthroughs which have quicken the pace of development of financial innovations. One of them were the insurance-linked securities (ILS), introduced as a way to transfer an insurance risk to capital markets. Typically used by large institutional investors such as pension funds or sovereign wealth funds, the insurance linked securities (ILS) are investment assets whose value is affected by insured loss events. This means performance is uncorrelated with traditional asset ...
