The total yield of the catastrophe bond market in US dollars has risen by roughly 7% during the month of April, to reach a level of 12.8%, with slightly higher collateral yields plus an 11.5% recovery in insurance risk spreads the key drivers.
You can analyse this in our chart that displays the yield of the catastrophe bond market over time.
At the end of March 2024, the total yield of the catastrophe bond market in US dollars had declined to 12%, with the insurance risk spread component dropping to 6.62%.
Fast-forward just a few weeks and the total yield has recovered by 7% to reach 12.8%, as of May 3rd, while the insurance risk spread component rose at a faster pace of 11.5% to reach 7.38%.
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