Catastrophe Bonds Hit Highs as Hurricane Florence Gains Strength

The video discusses catastrophe bonds, financial instruments linked to insurance risks from natural disasters like hurricanes and earthquakes. It highlights the market's growth, its appeal to sophisticated investors due to high yields and low correlation with traditional markets, and the inherent risks. The discussion covers the market's performance, risk management strategies, and future trends influenced by climate change. Investors are increasingly comfortable with these bonds, despite fewer ratings from agencies, due to their understanding of the risks and potential returns.

How has the perception of risk in catastrophe bonds changed among investors?

What role does climate change play in the issuance of catastrophe bonds?