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2025-09-15 22:34:25
The European Securities and Markets Authority (ESMA) has ruled that catastrophe bonds, due to their inherent complexity, should not be included in funds sold under the UCITS (Undertakings for Collective Investment in Transferable Securities) label. ESMA's guidance could disrupt the catastrophe bond market, with some investors warning that a sell-off could occur if the European Commission supports the proposal. If the European Commission accepts ESMA's guidance, asset managers may need to review their strategies and prepare for a changing regulatory environment, potentially creating buying opportunities in the secondary market.
