ESG & Investing
Catastrophe Bond Investors Brace for Major Losses as Milton Rages
- Hurricane Milton is expected to make landfall early Thursday
- The storm may rank among the largest-ever reinsurance losses
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Investors in catastrophe bonds are girding themselves for substantial losses as the combined destructive force of Hurricanes Helene and Milton looks set to trigger payment clauses on a scale not seen in years.
Two weeks after Helene unleashed severe floods in more than a dozen states, Florida is bracing itself for the impact of Milton, a potentially lethal Category 5 storm on the five-step Saffir-Simpson scale. It’s expected to make landfall early on Thursday morning, pushing a wall of water onshore. Millions of people have already fled the coastline, including residents in the densely populated city of Tampa.