Cat bond market supply-demand mismatch persists as pipeline builds

The mismatch between supply and demand in the catastrophe bond market persists and could now become accentuated, as the market pipeline of new cat bond deals continues to expand.

Right now, we’re tracking an impressive fourteen new catastrophe bond series that are being marketed to investors and are yet to complete, twelve of which have not even reached their final pricing.

This is a particularly long pipeline of new deals that are already in the marketplace, but with additional transactions still yet to launch to the insurance-linked securities (ILS) investor community, or that have yet to come to light to us through our market sources, the market for new cat bond issuance is perhaps as busy as it has ever been.

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