Catastrophe Bonds Dodge Worst-Case Scenario After Milton
- Investors had earlier estimated losses of as much as 15%
- Bond losses now seen as more likely to be in single digits
A boat is washed ashore following Hurricane Milton’s landfall in Punta Gorda, Florida, on Oct. 10.
Photographer: Joe Raedle/Getty ImagesThis article is for subscribers only.
After fearing the worst from Hurricane Milton, investors in catastrophe bonds appear to have sustained losses well below those predicted as recently as Wednesday.
Estimates that had indicated the bonds would lose as much as 15% have now been replaced by calculations showing investors are more likely to see a hit in the single digits. That’s after Milton made landfall as a Category 3 hurricane, weaker than originally forecast.