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
WATCH: (Oct. 10) Tanja Wrosch of Twelve Capital says cat-bond losses could be less than 15%. “It played out in the end a bit better,” she told Bloomberg Television a few hours after Milton made landfall.Source: Bloomberg
Lock
This article is for subscribers only.

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.