A Safe Harbor for a Stormy Investment Environment

May 19, 2025 — The US bond and equity markets have faced significant volatility this year, driven by a confluence of factors, including trade tariffs, potential tax changes, inflationary pressures, shifting foreign demand for US Treasuries, and deleveraging by hedge funds. This has led to increased market volatility across most traditional asset classes, but one area of the fixed income market that has demonstrated notable performance resilience is the Catastrophe/Insurance Linked Securities(CAT/ILS) sector.