Cat bond indices continue their climb; deal pipeline growing

It’s time for our monthly look at how the Swiss Re published catastrophe bond price and total return indices are fairing. You can find our commentary from last month here for comparison.

First we’ll take a look at 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 sat at just above 94 points, this month the index sits just under 96 points and has continued its climb to another year high.

Secondly, 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). Last month it had just passed 186 points on the index, it has continued climbing and currently sits at just under 190 and is still sitting at an all time high.

The market continues to look healthy according to these indicators. The pipeline of deals is strong with Swiss Re’s Successor X ready to complete, Flagstone Re marketing a new three year U.S. hurricane and quake deal (dubbed Montana Re) and rumours of Scor readying a new issuance.