Recovering from 'Hurricane Lehman'

The collapse of Lehman Brothers tested the assertion that catastrophe bonds offer investors complete diversification from other financial asset investments. Nonetheless, improvements to the structure of cat bonds along with their relative outperformance compared with other asset classes, has resulted in a raft of participants pushing these products in Asia. Duncan Wood reports


Few, if any, asset classes have survived the financial crisis with their reputations among investors intact. But the catastrophe bond market stood a better chance than most due to its claimed lack of correlation with more traditional asset classes.

Put simply, the events that wreaked havoc for equities, credit, currencies and commodities have no bearing on whether an earthquake is going to hit Tokyo or a windstorm wreck European towns and cities. That argument remains true today - but the market

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here