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A hedge fund that last year delivered its best result ever thanks to catastrophe bonds is now scaling back its position, based on a bet that the market is
(Bloomberg) -- Managers who went all out on the best hedge fund bet of 2023 are starting to recalibrate their portfolios, amid signs that the so-called catastrophe bonds underpinning the strategy are headed for a rough patch.Most Read from BloombergOne of the Most Infamous Trades on Wall Street Is Roaring BackStock Traders Bracing for Worst Shrug Off Hot CPI: Markets WrapUS Core Inflation Tops Forecasts Again, Reinforcing Fed CautionChina Has Never Canceled This Many Shipments of US WheatNY Says
As bond markets everywhere get battered by a cocktail of higher interest rates, deficit angst and hawkish central bankers, one class of debt instrument is
Investors in the $40 billion market for so-called cat bonds have literally been sitting out the storm to reap returns as high as 16% this year.
Investors have seen returns as high as 16% from one class of debt instrument.