Swiss Re Insurance-Linked Fund Management

Mt. Logan Capital Management, Ltd.

KRC Cat Bond UCITS ETF

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Microstructure, not correlation, shields pure-play cat bond ETFs from deleveraging regimes: King Ridge’s Pagnani

26th June 2026

During periods of market stress, waves of selling are typically triggered by balance-sheet constraints, funding pressures, and forced deleveraging. Because of this, investors often presume that catastrophe bonds, particularly in an ETF format, will mimic high-yield credit during a macro crisis, experiencing the same indiscriminate selling and liquidity breakdowns.

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