Insurance Linked Securities (ILS) can offer investors unique diversification benefits and a high income. As these securities pay a floating coupon, they are also largely immune to interest rate hikes.

ILS have a place in the portfolio of any investor seeking diversification from traditional market risk.

As with any financial innovation, Insurance Linked Securities (ILS) may be unfamiliar to many and be perceived as more complicated than they really are. This document is intended to provide a solid introduction to ILS as an asset class. We first describe what ILS are and the dynamics between investors and insurers that result in a growing market, and explain why we believe this growth will continue. We then turn to our investment philosophy and what we believe sets us apart from the competition. Finally, we inform you on how Lombard Odier’s clients can access this Lombard Odier’s clients can access this fascinating asset class.