Filter posts:

Show all

While investors are attracted to the uncorrelated returns of cat bonds, the purpose of issuers is to obtain insurance coverage against low frequency and high severity catastrophes. Consequently, we will eventually face an event large enough to cause extensive losses in the re/insurance industry and the cat bond market. However, an event, such as a hurricane category 4 or 5 making landfall in Southern Florida, also tends to increase future returns for investors, as the insurance industry need to attract new risk capital. Read more.

Robert Lindblom
Robert Lindblom
CEO

Improved standardisation regarding risk reporting can consolidate cat bonds as an asset class. Even waiting for a comprehensive standard, the industry could take several steps to increase the transparency of risk assessment. Read more.

Robert Lindblom
Robert Lindblom
CEO

Several factors - the diversification challenge in a low interest environment, expected new emissions and increasing supply of new perils on the market - indicate that cat bonds presently are an interesting option. Read more.

Robert Lindblom
Robert Lindblom
CEO

For fixed income instruments, such as cat bonds, the sensitivity to interest rate variation is very important to investors. Any investment in fixed-income instruments, such as traditional government or corporate bonds, or cat bonds, carries an interest rate risk. Cat bonds are, however, structured in a manner that minimises this risk. Read more.

Robert Lindblom
Robert Lindblom
CEO

Cat bonds have in the past 20 years had a total return on par with the equity markets. The total cat bond sphere, as measured by the commonly used index Swiss Re Cat Bond Total Return, has historically returned 8.7% per annum on average in the past decade This gives a total return of 130.7% in ten years, slightly above the total return on the stock markets in the same period. The return is highly due to the uncorrelated nature of cat bonds, which have left them largely unaffected by a number of drawdowns, most notably the financial crisis in 2007-2009, affecting most traditional asset classes. Read more.

Robert Lindblom
Robert Lindblom
CEO

Today, I write in an op-ed published at the Swedish financial news site Realtid, that many investors lack the responsible approach to alternative investments as they have to equity. If managers are to change, investors must make demands. Read more.

Robert Lindblom
Robert Lindblom
CEO

Cat bond investment management is somewhat different from the management of other asset classes as it is slow frequency trading and much more portfolio risk management. Entropics’ portfolio collects risk premiums by holding a globally diversified portfolio of natural catastrophe risk, with little or no correlation with traditional assets classes like equity and bonds. I am often asked by people I meet where cat bond management differs from traditional asset management, and I would like to use the opportunity to briefly explain some of the differences. Read more.

Robert Lindblom
Robert Lindblom
CEO

The volatility on the stock exchanges in August 2015 served as a reminder of the equity risk in many portfolios. Meanwhile, there are few alternatives for uncorrelated returns, as interest rates are low and many hedge funds face difficulties generating alpha. As an investor, you should always be conscious of how unexpected risks can affect your portfolio. Read more.

Robert Lindblom
Robert Lindblom
CEO

What makes Entropics stand out in the crowd? We are the first Nordic asset manager specialized in cat bonds, we emphasize responsible investments and are an independent manager. Read more.

Robert Lindblom
Robert Lindblom
CEO

Expectations on return and risk must be founded on today's economic realities, not on simple rules of thumb, independent of asset class. As uncertainty about the future of the stock market increases, more people search for uncorrelated returns. Read more.

Robert Lindblom
Robert Lindblom
CEO

While it’s very encouraging to receive so many inquiries on when the Fund will open for investments, it’s also hard to have to ask those interested in investing to bear with us for a little while longer. The reason for not just opening the fund and inviting investors is our determination to ensure a successful start for the fund. And doing so requires some caution on the fund manager’s behalf. Read more.

Robert Lindblom
Robert Lindblom
CEO

I’ve met many investors through the years, asking for return that is truly independent of the financial markets. This was the background when I discussed the possibility to found the first Scandinavian cat bond management firm with Gunnar Roos in 2013. Read more.

Robert Lindblom
Robert Lindblom
CEO