Lombard Odier IM appoints CAT bond team
Swiss asset manager Lombard Odier Investment Management (LOIM) has announced the appointment of an Insurance Linked Strategies (ILS) team, in a bid to expand its existing fixed income product range to include CAT bonds.
Gregor Gawron (pictured) joins LOIM as head of insurance linked strategies, he will be joined by portfolio managers Simon Vuille and Marc Brogli.
Prior to joining LOIM, Gawron led the CAT bonds and ILS offering at Dynapartners and before that at Falcon Private Bank.Before that, Gawron was a portfolio manager in the ILS team at RMF/Man Investments, where he worked closely with his current team. Based in LOIM’s office in Zurich, the ILS team will report to Jan Straatman, LOIM’s CIO.
“CAT bonds are uncorrelated to other risks, including economic and capital market events, while the 4%-6%1 returns on offer remain attractive. The overall ILS universe size is close to $60bn2 and growing steadily” Straatman said.
“In the next couple of years, fixed income will be more volatile and subject to rising rates. It will be crucial to add active and high conviction strategies which protect clients better against rising rates, instead of the traditional market cap based strategies. CAT bonds can meet these criteria with a higher starting yield and floating rate coupon” he adds.