Daily Fintech Conversations

ILS: A Lone Wolf Among Securities, A Boon For Cat Covers

Originally published at: https://dailyfintech.com/2020/10/29/ils-a-lone-wolf-in-securities-a-boon-for-cat-covers/

The ongoing pandemic stoked large corrections in equity, commodity and debt markets as players grappled with the full extent of its impact. At such times, insurance linked securities (ILS) are a boon, being mostly uncorrelated to mainstream financial markets. Since natural catastrophic ILS are driven by disaster events, there is no direct link to credit…