The catastrophe bond market continues on its positive trajectory in 2024, with robust demand on both sides of the trade. But with spreads and yields having become more “normalised” in recent months, cat bonds are now much more attractive to potential sponsors, Florian Steiger, CEO of Icosa Investments has said.
The significant demand for catastrophe bonds so far this year in both primary and secondary markets from investors has driven moderate increases in cat bond prices.
But, despite this, Steiger of Icosa Investments notes that spreads are still “significantly above their long-term average,” which he believes means 2024 will have a “continued positive outlook for the remainder of the year.”
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