Catastrophe bonds could hit $50 billion by 2018, report says

11/14/2013 | CanadianUnderwriter.ca · Insurance Journal

A report from Bank of New York Mellon says insurance-linked securities could amount to $150 billion in five years, with catastrophe bonds representing $50 billion of that total. Catastrophe bonds currently outstanding are valued at $19 billion, according to Aon Benfield. "The initial investor base was dominated by hedge funds and private equity, but we are seeing more long-term investors such as pension funds buying cat bonds," said Dean Fletcher of BNY Mellon. "Investors are attracted by the high yields in the current low-interest-rate environment."

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CanadianUnderwriter.ca · Insurance Journal

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