The relatively short time taken for catastrophe bond investments to recover after loss events and crises affecting global markets has been impressive throughout the sector’s history, with cat bonds exhibiting a tendency to recover from draw-downs much faster than other asset classes.
Hurricane Ian is the latest example, where the catastrophe bond market has already recovered all of the decline caused by this major catastrophe loss event, as measured by reinsurance firm Swiss Re’s Global CAT Bond Total Return Index.
In fact, the catastrophe bond market, as measured by Swiss Re’s Index, had dropped by roughly 9% in the wake of hurricane Ian.
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