Cat bonds perform post loss but uncertainty for private deals


Cat bonds perform post loss but uncertainty for private deals

Jirsak /

The average performance of cat bonds improved dramatically in October, up 0.35 percent, but the performance of some managers will diverge due to recent losses, the complexities of which also mean loss information is still being gathered by many managers.

That is according to the latest commentary from ILS Advisers in relation to the Eurekahedge ILS Advisers Index, which tracks the performance of participating Insurance Linked Investment funds.

The index is a benchmark that allows a comparison between different insurance-linked investment funds in the insurance-linked securities, reinsurance and catastrophe bond investment space. It is calculated and maintained by Eurekahedge and includes funds that allocate at least 70 percent of their assets to non-life risk.

The report noted that it has been a good year for ILS generally. Especially after hurricanes HIM, quite a number of new bonds came to the market. The year-to-date cat bond issuance amounted to a record high USD 11.45bn and the outstanding cat bonds also reached the historical high level of $30.68 billion.

Eurekahedge, ILS, Catastrophe, Cat bonds, Global

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