Catastrophe bond yields nearing record highs

Share

In the last few days as the U.S. Atlantic hurricane season approached (it’s now officially started) reports have emerged that catastrophe bond yields have climbed back up to near record highs. According to issuers, cat bonds are trading at similar levels to the yields seen just after hurricane Katrina. That’s pretty amazing, and shows that the resurgence of the cat bond is continuing strongly.

As promised, here’s a monthly update on the state of the Swiss Re Cat Bond Total Return Index:

swiss re cat bond total return index

You can see that the index has continued it’s climb in the past month. Chart the index on Bloomberg here.

Now that the hurricane season is upon us, we hope to see more diversity in the risks covered by any future cat bonds as there had been a bit of a U.S. focus to date. We still have yet to hear whether Ianus Capital has been successful as the first cat bond of 2009 to feature risks outside the U.S.

———————————————————————
Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Gulf oil platforms lacking insurance cover prior to hurricane season

You would have thought after the last hurricane season that oil companies with offshore rigs or refineries in the Gulf...

Close