Reported about 4 hours ago
Investors in catastrophe bonds are anticipating major losses as Hurricane Milton, a Category 4 storm, heads toward Florida with damage estimates exceeding $100 billion. These bonds transfer the risk of extreme weather events to investors, who can profit during quiet seasons. However, major storms can invoke clauses that redirect funds from bondholders to disaster victims. Following the losses triggered by Hurricane Ian in 2022, analysts fear Milton could lead to similar or greater damage, impacting both cat bond values and global reinsurance stocks.
Source: YAHOO