How losses in cat bonds in 2017 have turned investors away from the asset class, opening up opportunities for contrarian investors
Deep losses in September 2017 have led to an exodus of investors from cat bonds. Our hype index for cat bonds now shows a strong negative signal, indicating that cat bonds are currently in the opposite of a hype situation.
This opens up opportunities for contrarian investors who can profit from cat bond yields that are substantially higher than yields on similarly rated high yield bonds.
We expect cat bonds to significantly outperform their long-term average returns in the next three to twelve months.
To view the full report click here.
This communication contains written material that is generic in nature and not related to a specific financial instrument. It is not personalised to reflect the circumstances of an individual client and therefore does not amount to a personal recommendation to any person. It does not contain any substantive analysis and does not and is not intended to recommend or suggest any investment strategy or opinion as to the future value or price of financial instruments of any kind. This communication is also made openly available at the same time to any investment firms wishing to receive it or to the general public on this ("Fidante Partners") website www.fidante.com. Recipients of this communication based in the EEA who are subject to regulation under MiFID should note that while they must make their own determination Fidante Partners Europe Limited ("Fidante Partners") is of the view that this communication constitutes a “minor non-monetary benefit”.
Image: A. and I. Kruk/Shutterstock.com