19/06/2024 Podcasts 45 minutes to read Back to all News & Insights

Catastrophe Bonds: A Genuine Alternative Asset

Praemium’s Damian Cilmi is joined by Dr. John Seo co-founder of Fermat Capital Management, for a discussion on the Catastrophe Bonds. Dr. Seo, a thought leader in insurance-linked securities, walks us through the essential aspects of catastrophe bonds, from their structure to their market dynamics, and provides valuable insights into how these bonds offer uncorrelated returns and attract major institutional investors.

Catastrophe Bonds: A Genuine Alternative Asset


Damian Cilmi is joined by Dr. John Seo, a trailblazer in the Catastrophe Bond market and co-founder of Fermat, as they discuss the fundamentals of catastrophe bonds, their typical maturities, the types of natural disasters they cover, and the returns they offer. Dr. Seo provides insight into the roles insurance and reinsurance companies, as well as government agencies, play in issuing these bonds.

They discuss the market's evolution into a $100 billion industry which is characterised by liquidity, transparency, and non-leveraged investments. In this podcast learn how these bonds are tracked and valued, and understand their primary and secondary liquidity dynamics.