According to equity analysts at investment bank and financial services specialist TD Cowen, companies in the London insurance and reinsurance market still consider ILS and alternative capital as largely peripheral, believing that it is traditional capital that drives most price pressure in the sector. Moving on to the TD Cowen analyst comments on what the trajectory of interest rates could mean for the ILS market. It’s often been seen in the past that declining interest rates has been said to be a factor in lowering the attractiveness of cat bonds and ILS for investors. Those properties can shine in an environment where central bank rates are shrinking, so TD Cowen is right to point that out. But they continue to shine when interest rates are on the rise as well.