Catastrophe bonds: Others rush in where Buffett fears to tread

[NEW YORK] Bond buyers are betting more than ever on the mercy of Mother Nature as they seek to boost yields being suppressed by central banks.

Demand for notes linked to insurance against hurricanes and other natural disasters is prompting investors to accept the lowest relative yields in almost a decade for this time of the year, when the Atlantic storm season gets underway.

Buyers are speculating that the US$22 billion market can continue its streak without an annual loss even as Warren Buffett said last week that Berkshire Hathaway Inc is avoiding writing hurricane insurance in Florida because premiums have been pushed too low.

Investors who have snapped up US$5.76 billion of new catastrophe...

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