26. October 2010 10:55
Vol 26 No 4 of our newsletter, Australian Banking and Finance Law Bulletin is now online.
We note in particular the article by Dr Mick Young, Henry Davis York, "Configuring catastrophe bonds: the science behind surprise":
The worst of the global financial crisis appears to be subsiding. Given the ongoing uncertainty in international credit markets, however, the full extent of the impact of the crisis in the years ahead remains unclear and conditions in the financial markets will, at the very least, remain challenging for the foreseeable future. Yet the market disruption has helped to re-enforce a basic rule of investing that was overlooked by many when financial markets were booming: the need to offset risk through the diversification of investments. Today, many international investors are looking for alternative investment vehicles to diversify their holdings to help shield them against future market shocks. The capacity of the capital markets to offer investors a rich portfolio of risk management strategies potentially holds the keys to this protection. [full article]