Reported about 1 month ago
Investors in catastrophe bonds remain largely unaffected by Hurricane Milton, which struck Florida as a Category 3 storm. Initial projections suggested potential losses of 15%, but actual losses are anticipated to be around 1%. This positive outcome allows investors to expect returns of up to 12%, with the Swiss Re global cat-bond index increasing over 13% this year. Despite concerns about an active hurricane season, Milton's damage was mitigated by its speed and smaller wind field, leading to a favorable outlook for catastrophe bond funds.
Source: YAHOO