Investing in Cat Bonds
in VBA Journaal door Peter-Jan de Koning (l) en Rogier Leeuwenburgh (r)Catastrophe bonds (cat bonds) are a relatively new but fast growing and attractive investment opportunity. Cat bonds are designed to transfer insurance risk resulting from extremely large and costly natural catastrophes from (re)insurance companies to the capital markets in return for a risk premium. In addition to the attractive expected return, another main benefit of cat bonds is the lack of correlation with other asset classes.