2021 saw the catastrophe bond market soften, with a trend towards tightening across most of the year, but differentiation remained, driven by investor appetites, but according to Swiss Re Capital Markets the relative value of the insurance-linked securities (ILS) asset class persists.
As we explained yesterday, the end of the year saw cat bond investors both displaying their strong appetite for certain ILS risks and perils, as well as their caution for others, which was reflected in the pricing of December cat bonds.
The latest cat bond market report from reinsurance firm Swiss Re’s Capital Markets unit goes further into these trends, explaining that some perils saw spreads tightening faster and further as investors shifted their focus during 2021.
FULL ORIGINAL PUBLICATION HERE
