08 September 2017 by lberuti
The main themes of the week were nothing new to market participants. The focus was first on North Korea and much of the talks Monday and Tuesday centred on the latest nuclear test carried out over the week-end. But once again, any concerns investors might have had early on were swiftly brushed aside and, at the end of the week, risk premia were tighter across the board. People still appear more concerned by the coming roll than any escalation in Korea. The focus then turned to natural disasters, as Irma followed Harvey. The hurricane swept over the Caribbean, devastating a chain of islands, ahead of an all but certain collision with Southern Florida. While Irma has weakened slightly recently, it has grown in size, and it threatens to become the most expensive storm in US history. If at first investors were a tad slow to push insurers and reinsurers’ risk premia wider, the move gained momentum as the week progressed, and that group was the clear underperformer over the last five trading sessions.