High frequency, low severity insurance led investing
In fact, the AXA motor offering is a phenomenon - for such publicly investable opportunities are few and far between
Relatively speaking their coupon and payout structure may not seem as attractive as those offered by cat bonds - but on the other hand, the risk is less volatile and are not of the “all-or-nothing type” - their pay out stream is more stable.
Expertise from David Hu - Part II
There is no doubt that there are many new, promising opportunities due to the credit crisis, particularly for trade finance and in select Latin American markets ...
Our fund is poised to thrive, especially in a time like this when traditional sources of capital may dry up. We attribute this belief to the fact that global trade is a multi- trillion dollar market and is not going away.
In tact return drivers
Investors have recently been willing to accept as low as 5% discount rates for timberland, but now expect rates of compensation to reach 8-9% returns p.a.
There is much more to timber, including land appreciation, bioenergy and carbon sequestration- which are counter-cyclical and provide uncorrelated return streams to those generated by other assets.
A fund of funds that invests globally in asset based lending, investing & other strategies
Loan tenure: ranges from 1 day to 3 years - with 34.1% ranging between 91-120 days
Strategic integration and execution of an opportunistic volatility arbitrage position within the portfolio that aims to contain downside risk, particularly under stressed market conditions