November 2024 - Monthly Review

CAT Bonds = SWANs?

Hurricanes Helena & Milton have brought catastrophe bonds (nicknamed “CAT bonds”) back into focus, as they are considered a municipal bond sector. As storm season peaked in October, these bonds became illiquid for a couple of days and are now trading much wider than their initial pricing. Muni bonds that trade according to weather? CAT bonds provide a necessary for the public good service, but as for a “sleep well at night investment”, this is open for discussion in this month’s MainLine Muni Market Review.

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Expert Insight About The Municipal Bond Market

Our team of investment professionals are active in the market daily. Our blog includes posts with valuable insight and commentary about critical municipal finance topics and expert interpretation of how current economic factors may affect the municipal bond market.

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About The Author

Mike Maciolek, CFA, is a Senior Vice President at MainLine West and a member of the investment team for individually managed client accounts and our family of Tax Advantaged Opportunity Funds. Prior to his current role, he was a portfolio manager for First Data Corporation. Mike directed a set of municipal bond portfolios approaching $12 billion in market value, and $7 billion in interest rate derivatives, applying his expertise to meet the various objectives of the portfolios. He began his 30 year career in New York City as an analyst with management responsibilities for $2 billion in tax-exempt money market funds for Oppenheimer Funds.

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