March 27, 2013 05:54
by J. Wylie Donald
Here is some food for thought: Catastrophe bond payouts are correlated with climate change. Climate change is correlated with stock market returns. Therefore catastrophe bond payouts are correlated with the stock market. See Aristotle, Prior Analytics. We did not study philosophy but Aristotle’s syllogism seems difficult to refute.
The March 2013 Best’s Review reports on investors’ current heightened interest in catastrophe bonds; demand in 2012 was up 37% over the previous year and was the second highest level ever. See Ron Panko, B...