Investors Flock to Catastrophe Bonds in Search of High Returns

The catastrophe bond market may sound like some kind of risky punt against the wind, but betting on the weather can prove a sound investment, writes Claude Brown Life, it is often said, has two certainties, though the growing frequency of extreme weather events perhaps suggests a third could soon be added. From Florida to New Zealand, swathes of the planet are now battered by hurricanes and earthquakes with seemingly greater frequency. Only last year, for instance, Hurricane Ian swept across North America, causing an estimated $35bn-$55bn of damage…