Synopsis: The Hurricane season has begun again, and Bermuda is still at its centre. The island’s reinsurers are battening down their hatches and preparing for another stormy summer, with hedge funds set to play an ever-larger part in their preparation. Hedge funds have been providing capital to the reinsurance industry since the first CAT bond was issued in 1996. However, recent convergence between hedge funds and reinsurers has accelerated, not least because of the succession of storms in the summer of 2005.
Authors: Neil Horner
Article: Market Analysis