Thursday, June 6, 2013

Deutsche Bank Planning a Catastrophe-bond Hedge Fund

Sure why not. We already have hedge funds doing a little Bermuda tax dodge with reinsurance subsidiaries so why not a cat bond hedge?
From FINalternatives:
Deutsche Bank Readies $100M Insurance-Linked Hedge Fund
Deutsche Bank is planning a catastrophe-bond hedge fund, in spite of the difficulties it faces in doing so due to new U.S. regulations.

The bank's Deutsche Asset & Wealth Management unit will run the new fund, with new re-hire Michael Amori as manager. Amori, who is based in London, was co-head of Deutsche Bank's longevity markets group until leaving the bank late last year.

The new fund will invest in cat-bonds and other insurance-linked investments, Hedge Fund Alert reports. Deustche Bank, which has yet to begin marketing the fund, plans to seed it with US$100 million, in spite of the restrictions placed on it by the Volcker rule, which strictly limits the amount that banks can invest in hedge funds....
From Bloomberg:

A Hedge Fund Tax Dodge Uses Bermuda Reinsurers