Understanding Catastrophe Bonds and Insurance-Linked Securities with Rick Pagnani

In this episode of our “Meet the Manager” series, Rick Pagnani, Co-Founder, Lead Portfolio Manager and CEO of King Ridge Capital, discusses the firm’s approach to insurance-linked securities and the specialist expertise required to invest in catastrophe bonds. Rick explains King Ridge Capital’s three guiding principles of building portfolios that are resilient to single events, managing liquidity and seeking to maximise risk-adjusted returns. He also discusses how catastrophe bonds are priced, the importance of actuarial and scientific expertise, portfolio diversification across perils and regions, and the outlook for the catastrophe bond market in 2026. Key topics covered: • King Ridge Capital’s approach to insurance-linked securities • The three guiding principles behind portfolio construction • Recent developments in catastrophe bond spreads • The role of actuarial science in assessing catastrophe risk • How catastrophe bonds are evaluated and priced • Managing concentration across different perils and regions • Liquidity and downside risk in catastrophe bond portfolios • The outlook for catastrophe bonds in 2026 Timestamps • 0:04 - Tell us something about you and your firm: • 0:24 – How would you describe your strategy? • 0:46 – What trends are shaping the industry? • 1:07 – Why is active management important to the strategy? • 1:39 – What key factors do you consider when evaluating a bond? • 2:47 – What’s your outlook for 2026? Find out more: www.hanetf.com This material does not constitute a marketing document. It is not an invitation to invest and is for educational purposes only.