Now that the catastrophe bond market is looking more healthy and issuance has returned to normal levels it’s a good time to take another look at the Swiss Re Cat Bond Total Return Index to see how that indicator of market health is responding. The index tracks the total rate of return for all dollar-denominated bonds so is a good indicator of investor appetite and market health.
As you can see the index is continuing it’s recovery and is now heading back towards it’s all time highs of last August (before the market ground to a halt). Given the pipeline of deals waiting to come to market we can expect this rise to continue for the next few months. You can chart the index on Bloomberg here and we will continue to provide monthly updates.