Cat bond and ILS activity reflects shift to collateralized reinsurance

Catastrophe bonds and insurance-linked securities activity in January reflects the continuing shift towards collateralized reinsurance investments, reports Artemis.bm.

The attractive returns available in collateralized reinsurance and the reductions in catastrophe bond yields prompted the shift by some investors. This trend has resulted in ownership changes for several short-dated, higher-yielding cat bonds.

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