Catastrophe bond offering size changes during issuance
The chart on the page displays a visualisation of how much on average in percentage terms catastrophe bond offering sizes changed during the issuance process.
Based on data from the Artemis Catastrophe Bond & Insurance-Linked Securities Deal Directory, this chart enables you to view and analyse the average offering size change from the initially targeted offering size to the final confirmed cat bond size at issuance, across tranches from: pure 144a catastrophe bond deals; other cat bond like deals featuring specialty, life, mortality risk, etc; and private cat bond lites or private ILS deals where we have initial and final size information.
Note, this data is kept current and this chart is regularly updated as new catastrophe bond and similarly structured insurance-linked securities (ILS) deals are launched, where we have the information.
Catastrophe bond offering size changes during issuance – by quarter
For each quarter, we track the initial target size for each catastrophe bond that comes to market and the final confirmed issuance size at settlement, then work out the average percentage move, upwards or downwards, across all cat bond issues during the period. As you can see, the typical trend is for cat bonds to upsize, helped by investor demand, but there are a few deals that come in a little smaller than expectation, although they are masked by the more normal trend for deals to upsize. It’s also important to note that in periods of heavy issuance upsizing can be lower on average, given the high volumes of notes being issued into the market.
The data to create this chart is taken from the Artemis Deal Directory so can include some private catastrophe bond transactions, as well as any life, mortality or longevity insurance-linked security deals where we have the initially marketed offering size and final details.
Every effort has been made to accurately reflect the size of the catastrophe bond market and the amount of catastrophe bond and ILS issuance each year.
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