Beyond climate change, we believe the roles of exposure growth and population shifts in driving rising natural disaster losses could reveal unexpected opportunities in the ILS market.

Rising natural catastrophe losses have been a major focus for insurance-linked securities (ILS) risk managers. Climate change is often cited as the primary reason for this insured loss growth, and while it is a significant long-term influence on natural catastrophes, exposure growth and population distribution changes appear to be the leading drivers of elevated insured losses. Furthermore, because ILS are ...

In this challenging environment, filtering meaningful market signals means paying close attention to the interplay among long-term rates, nominal growth and liquidity.

The dynamics of the equity market are influenced by myriad macroeconomic variables. Recently, long-term interest rates have served as a cap on performance, while nominal growth and overall liquidity have provided a floor.

Where might things go from here?

Start with rates. In the near-term, we believe higher long-term rates will continue to weigh on markets. In recent weeks, we have observed a strong correlation between...

Dynamics in the energy market are likely to shift dramatically.

At the outset, our thoughts and sympathies go out to those affected by the shocking attacks in Israel.

This past weekend, we witnessed a severe escalation of tensions in the Middle East, marked by the most serious cross-border attacks on Israel in decades. These unsettling events have reverberated through financial markets, causing notable impacts on the energy sector.

Before these developments, the ongoing talks around normalization between Saudi Arabia and Israel was a key market focus....