Marginal gains theory plays out as cat bond funds proliferate
  • X
  • LinkedIn
  • Show more sharing options
  • Print
  • X
  • LinkedIn
  • Free Trial
  • Log in

Marginal gains theory plays out as cat bond funds proliferate

Jai Singh, 
Liz Bury
13 November 2023
  • X
  • LinkedIn
  • Show more sharing options
  • Print
  • X
  • LinkedIn
cat events cat bonds funds.jpg

In a cat bond market of $40bn, the scope for differentiation between strategies is narrow, meaning that managers must leverage the accumulation of small advantages to gain an edge on the competition.

“You can’t differentiate from a benchmark return,” said one consultant to Trading Risk, citing the tendency for performance to cluster in a small-size market with multiple managers of $3bn-$10bn.

However,

Subscribers, log in here:

Fuel a smarter strategy with our actionable market intelligence

      • Gain a competitive edge and accelerate decision-making
      • Be empowered by insights that transform confusion to clarity
      • Uncover growth opportunities and prepare for potential threats
      • Fuel a smarter strategy for business growth
Request a free trial Already a subscriber? Log in now

Topics

Analysis ILS managers Catastrophe bonds ILS Secondary trading
jai singh/jai singh ii ils.png
Jai Singh
Reporter
Contact
Headshot template (new) (1).png
Liz Bury
Editor
Contact
Gift this article