Cat bond indices to finish the year on a high

by Artemis on December 21, 2009

It’s time for a final look (for 2009) at the Swiss Re cat bond indices. Both indices have shown an amazing recovery from the low points of this time last year and that growth has continued although with slight retreats due to the volume of deals and notes available in the marketplace after a busy last half of the year.

First the Swiss Re Cat Bond Price Return Index, tracking the price return for all outstanding USD denominated cat bonds (which you can quote and chart through Bloomberg here). Last month the index was sitting just under 96 points, this month it has retreated slightly, sitting at just under 95 points on the 18th December.

Swiss Re Cat Bond Price Return Index

Next the Swiss Re Cat Bond Total Return Index, tracking the total rate of return for all outstanding USD denominated cat bonds (which you can quote and chart through Bloomberg here). This index has continued its climb and still sits at an all time high having just passed the 190 point mark on the 18th December.

Swiss Re Cat Bond Total Return Index

It’s been an incredible year in the catastrophe bond market as we’ve seen the market recover dramatically and so much innovation in the deals which have been completed. The pipeline continues to look strong and while we may not see any more transactions launch in 2009 we expect to see several early in 2010.

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