Catastrophe Bonds Survive A Stormy Year
Bloomberg Businessweek Middle East|January 16, 2018

The turbulence of 2017 couldn’t destroy a market for betting against disasters

- Sonali Basak & Brandon Kochkodin
Catastrophe Bonds Survive A Stormy Year

The year 2017 turned out to be a big test for one of the odder financial assets on the market: catastrophe bonds. They’re essentially a way for insurers to protect themselves against high costs from natural disasters—and for investors to bet on earning a steady return as long as those disasters don’t happen.

Recent hurricanes across the Atlantic are estimated to have caused more than $200 billion in damage. Through early October 2017, the U.S. was hit by 15 weather events that cost $1 billion or more each, according to the National Centers for Environmental Information. That’s one short of the record set in 2011 and doesn’t include the costs of the recent wildfires in California. By and large, the $90 billion catastrophe bond market survived intact.

Investors who owned the bonds suffered losses, to be sure. The Stone Ridge Reinsurance Risk Premium Interval Fund, which owns catastrophe bonds, tumbled more than 11 percent in 2017. The Swiss Re Cat Bond Total Return Index, a widely used gauge of the market’s performance, lost more than 15 percent in one bad week, then recovered to end the year basically unchanged. The pain was a sign of health. If investors don’t take a hit in bad years, the bonds probably aren’t doing their job providing protection to the issuers.

この蚘事は Bloomberg Businessweek Middle East の January 16, 2018 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Bloomberg Businessweek Middle East の January 16, 2018 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

BLOOMBERG BUSINESSWEEK MIDDLE EASTのその他の蚘事すべお衚瀺
Golfing With The Enemy
Bloomberg Businessweek Middle East

Golfing With The Enemy

Did Donald Trump's executives violate the Cuban embargo?

time-read
10+ 分  |
August 16, 2016
Super-Rich Syrians Wait for War's End
Bloomberg Businessweek Middle East

Super-Rich Syrians Wait for War's End

Actor, author, playwright. Gill Pringle tries her hand at unravelling the mystery behind this enigmatic multi-hyphenate

time-read
10+ 分  |
July 01, 2016
Pam Codispoti
Bloomberg Businessweek Middle East

Pam Codispoti

The mastermind behind the industry-shaping Chase Sapphire Reserve Card sets her sights on banking

time-read
2 分  |
January 16, 2018
This Time It's The Economy
Bloomberg Businessweek Middle East

This Time It's The Economy

President Rouhani’s budget sets offprotests from people angry about unemployment and inflation

time-read
5 分  |
January 16, 2018
Saudi Prince Counts On Support Of Citizens
Bloomberg Businessweek Middle East

Saudi Prince Counts On Support Of Citizens

State-worker salary increases appeal to the people, but policy may throw the budget off track

time-read
3 分  |
January 16, 2018
Stalin's Legacy Is Choking The Ukrainian Economy
Bloomberg Businessweek Middle East

Stalin's Legacy Is Choking The Ukrainian Economy

The government has resisted pressure to lift a ban on land sales, despite pressure from the IMF and investors

time-read
4 分  |
January 16, 2018
Catastrophe Bonds Survive A Stormy Year
Bloomberg Businessweek Middle East

Catastrophe Bonds Survive A Stormy Year

The turbulence of 2017 couldn’t destroy a market for betting against disasters

time-read
3 分  |
January 16, 2018
Riding The West Bank's Credit Boom
Bloomberg Businessweek Middle East

Riding The West Bank's Credit Boom

Increased consumer lending is creating a bubble in the West Bank

time-read
3 分  |
January 16, 2018
You'd Be Crazy To Buy Pizza With Bitcoin
Bloomberg Businessweek Middle East

You'd Be Crazy To Buy Pizza With Bitcoin

Speculative fervour makes the cryptocurrency clumsy for commerce

time-read
3 分  |
January 16, 2018
What If The President Loses His Party?
Bloomberg Businessweek Middle East

What If The President Loses His Party?

Trump has to figure out a way to work with Republicans in Congress, or the global economy may be at stake

time-read
6 分  |
August 16, 2017