Our live webinar and Q&A forum took place on Tuesday 26 June, 2012 at 3:00 p.m. BST. You can view the Webinar recording and presentation slides using the following links:
Webinar recording: https://rms.webex.com/rms/lsr.php?AT=pb&SP=EC&rID=110560267&rKey=3b04f3a810c4621e
Presentation slides: http://www.rms.com/webinar/pensionsage.asp
In the current financial environment, with government bonds no longer offering the safety and return they once did and with inflation eroding the value of cash, investors are continuously searching for true diversification. But infrastructure and agriculture are not the only asset classes with low correlations to the financial markets.
Insurance, available to investors through insurance linked securities like catastrophe (cat) bonds, is the perfect example of risk with a fundamentally different origin - those instruments can only be triggered by the occurrence of natural catastrophic events like hurricanes or earthquakes.
Cat bonds have been in existence for nearly two decades, and have demonstrated strong performance in the wake of recent natural catastrophes, such as Hurricane Katrina (2005) and the Tohoku earthquake (2011). During the recent global financial crisis, catastrophe bonds changed hands at close to par, while other assets traded at much deeper discounts.
Catastrophe bonds have offered returns comparable to high-yield bonds, while showing volatility similar to high-grade bonds, and are now recommended as a key part of an alternative asset allocation by mainstream pension consultants.
Learn more with RMS
Our live webinar and Q&A forum took place on Tuesday 26 June, 2012 at 3:00 p.m. BST. We explored both the advantages and risks of this asset class.
During the 45-minute session, we covered:
- What are catastrophe bonds?
- How can pension funds achieve peace of mind with this ‘exotic’ risk?
- How have cat bonds performed during periods of financial stress?
- How liquid are cat bonds?
- Why does alpha exist, and what can a pension fund expect?
- How are international pension funds successfully including ILS within their portfolios?
- How to get started investing in the asset class
Webinar recording: https://rms.webex.com/rms/lsr.php?AT=pb&SP=EC&rID=110560267&rKey=3b04f3a810c4621e
Presentation slides: http://www.rms.com/webinar/pensionsage.asp
About RMS:
Risk Management Solutions is the world’s leading provider of products and services for the quantification and management of catastrophe risk and a vocal proponent of the attractive economics of catastrophe bonds for institutional investors. Through a combination of catastrophe bond pricing analytics and portfolio management software, RMS supports investors wishing to diversify their portfolios by investing in Insurance Linked Securities.
RMS is also the leading provider of longevity de-risking solutions and excess mortality modelling. The company has worked on a number of transactions, including the recent longevity swap brokered by Deutsche Bank involving the Netherlands population, and is able to provide an objective, verifiable benchmark assessment of longevity and mortality risks that has the confidence of investors.
About the speaker:
Peter Nakada is Managing Director of RMS RiskMarkets – the group that provides products and services for the transfer of catastrophe risk to the capital markets. He has led RMS RiskMarkets growth from providing cat bond risk analyses to providing innovative parametric index products, and sophisticated portfolio analytics for insurance-linked securities.
Peter’s background has focused on how to bring risk quantification, technology, and management science together to help financial institutions make better risk-return decisions. Before joining RMS, Peter was a co-founder of ERisk, a firm that provided risk and capital management software and consulting to the banking industry. Before that, he was a partner in Oliver Wyman & Company’s risk management practice, where he spearheaded the firm’s expansion into risk and capital management consulting for the Property & Casualty insurance sector.
Peter began his risk management career as a portfolio manager with Prudential Insurance Company, where he was part of the early wave of engineers moving into quantitative finance. Peter has a B.A. in Engineering Sciences from Harvard College, a M.S. in Engineering Management from Stanford University, and is a CFA charterholder.