Investors in catastrophe bonds scrambling to assess Hurricane Florence risk

Investors appear undeterred by last year's Atlantic hurricane season: $11.6 billion of catastrophe bonds and related securities have been issued so far in 2018, closing in on last year's record of $12

Catastrophe-bond investors are trying to assess the potential fallout from Hurricane Florence and whether they’re in store for painful losses.
 
If the storm’s path of destruction —which is aimed at North and South Carolina — causes enough damage in certain areas, some portfolio managers holding catastrophe bonds could be on the hook. The securities are used by insurance companies to transfer the risk of disasters. Issuers make coupon payments to investors, but if certain trigger events occur — like hurricanes — bond holders can lose all their principal.
 
As the storm approaches, disaster modelers like Risk Management Solutions