Cat bond funds ranked among 2023's top-performing credit funds

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Catastrophe bond funds rank among the 10 best performing credit funds this year, as the hurricanes, earthquakes and other disasters that could trigger payouts have either not happened or not been sufficiently severe.

, Franklin Templeton K2 Advisors and LGT Capital Partners have all returned over 8% so far this year, among the bond funds that research firm Kepler tracks. It did not provide a year-on-year comparison.Kepler tracks Undertakings for Collective Investment in Transferable Securities , which are regulated like mutual funds and serve investors that want quicker, more transparent access to their money.

hurricane. So this year, cat bonds were issued with higher yields, thereby rewarding investors for holding them. As the planet has heated up and the number of climate events has risen, so have the insured losses from natural disasters. He said cat bonds averaged a 0.9% yearly loss for the last 20 years, while global corporate high-yield bonds lost about an average of 2% yearly, in that time.

 

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