catastrophe bonds News

Hedge Fund That Rode Catastrophe Bond Rally Mounts Tactical Retreat

A hedge fund that last year delivered its best result ever thanks to catastrophe bonds is now scaling back its position, based on a bet that the market is headed for a rough patch. Tenax Capital, which has a €100 …

Risk Models Behind Insurance-Linked Securities Are Getting a Lot Harder to Crack

As the best hedge fund strategy of 2023 becomes a magnet for mainstream investors, the risk models it relies on are getting a lot tougher to crack. The strategy in question is tied to insurance-linked securities, which are dominated by …

Fidelis Insurance Holdings Sponsors New ‘Herbie Re’ Catastrophe Bond

Fidelis Insurance Holdings Ltd., the Bermuda insurance holding company, announced it has closed a new catastrophe bond via its “Herbie Re” program. This is the fifth series of notes issued by Herbie Re and will provide Fidelis Insurance Holdings (also …

Hedge Funds’ Mega Returns Set Off Demand Spiral for Catastrophe Bonds

As hedge funds rake in record profits in one of the riskiest corners of the debt market, the products behind those returns are now drawing in more mainstream investors. Catastrophe bonds, which last year formed the basis for the best-performing …

Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk

For hedge funds, the science of catastrophes helped generate the best returns of any alternative investment strategy last year. The calculus around natural disasters such as hurricanes and cyclones fed record gains at funds managed by firms including Tenax Capital, …

Hedge Fund Fermat Has Best Year Ever as Catastrophe Bonds Deliver Record Results

Fermat Capital Management just had the best year in its more than two-decade history, after outsize bets on catastrophe bonds delivered record results. The hedge fund’s returns were “in line” with the 20% gain in the Swiss Re Global Cat …

Markets/Coverages: Lloyd’s Announces 1st 144A Cat Bond on Its London Bridge Platform

Lloyd’s, the re/insurance marketplace, announced that the first 144A catastrophe bond has been issued on its risk transformation platform London Bridge 2 PCC Ltd. Beazley is the sponsor of the US$100 million transaction, on behalf of its Lloyd’s syndicates (623, …

Inigo Issues 3rd Catastrophe Bond for $100 Million

Inigo Ltd. announced it has issued its third catastrophe bond for $100 million via Montoya Re Ltd. The cat bond will cover North American named storms and earthquakes and will use a PCS industry loss index trigger. The coupon is …

Allianz Sponsors Catastrophe Bond for European Windstorm Risks

Allianz has sponsored a new catastrophe bond which will provide the group with multi-year risk transfer capacity of €250 million to protect itself against European windstorms. Allianz entered into a three-year reinsurance agreement with Blue Sky Re DAC, a special …

Insurance, Cat Bonds Can Help Boost Poorer Countries’ Resilience to Climate Risks

Low-income countries are struggling to access insurance, catastrophe bonds and other hedging mechanisms that could help protect them from the economic fallout of climate change, industry sources told Reuters. Helping these countries, which face some of the biggest risks from …