The Drivers of Catastrophe Bond Pricing

Catastrophe bonds provide a means for investors to achieve returns that are uncorrelated with the broader financial markets. Niraj Patel, ILS Portfolio Manager, PartnerRe, explains how portfolio managers can make more informed decisions around capital allocation by understanding the attributes of pricing trends. In this paper he provides a comprehensive analysis of catastrophe bond pricing over the last 15 years to determine the specific factors and conditions that drive pricing.

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