Hedge Fund Fermat Predicts 20% Surge in Catastrophe Bond Market

Hedge Fund Fermat Predicts 20% Surge in Catastrophe Bond Market

Hedge fund Fermat Capital Management expects the market for catastrophe bonds to grow 20% this year, as a product based on disasters gains ground in a world increasingly shaped by extreme weather, population density and inflation.

Fermat sees 20% growth in cat bond market

Hedge fund Fermat Capital Management is forecasting a 20% expansion in the catastrophe bond (cat bond) market in 2025, as institutional and retail investors increasingly allocate to insurance-linked securities (ILS), according to a report by Bloomberg. The report cites Fermat Co-Founder and Managing Director John Seo as saying that the forecast would take the cat bond market to approximately $60bn by year-end, driven by inflation, climate volati…