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Catastrophe bond market yield dips to 12% on insurance risk spread squeeze

The total yield of the catastrophe bond market in US dollars had declined to 12% by the end of March, down from a high of close to 16% in early January. But the signs are that the cat bond market yield may be stabilising, as demand and supply become more balanced, Plenum Investments believes.

We have launched a new chart that displays the yield of the catastrophe bond market over time, with the help of partner Plenum Investments AG, a specialist insurance-linked securities (ILS) and cat bond investment manager.

The chart also breaks out the total yield of the cat bond market into its constituent parts, of the insurance risk spread and collateral return.


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