The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance.
Of course, that’s as long as there aren’t any principal losses throughout the year and with an entire hurricane season to go, at this stage there is no certainty on that.
But, the data underscores the significant cash liquidity that catastrophe bond investors have been benefiting from, which has helped the market to absorb new deals easily and expand itself.
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