John Butler, managing partner and head of sourcing at Twelve Capital talks to Intelligent ILS about the increase in cat bond lites and using the cat cycle to maximise returns.
In an ever-evolving market, fund managers are seeking out new strategies and structures to efficiently make the most of the insurance-linked securities (ILS) market.
The past 24 months has been peppered with ‘cat bond lite’ transactions which, due to their lower capital requirements and reduced level of document complexity, have opened the door to a new wave of private ILS cedants.
For Twelve Capital, a fund manager which focuses on multiple asset classes, these transactions have helped to generate positive returns for investors, while encouraging new, or rarely seen, perils into the ILS sector.
Twelve Capital, ILS, Cat bond lite