Cat bond market index falls 1.34% on hurricane Milton. US wind down 3.64%

Responding to the potential impact of losses from hurricane Milton, the catastrophe bond market has fallen by just 1.34% at the end of week pricing of the index calculated by Swiss Re Capital Markets, while the US wind specific version of the cat bond index fell by only 3.64%.

It’s a stark contrast to how the Swiss Re Global Cat Bond Index behaved after hurricane Ian in 2022 and while these figures fall into the range of catastrophe bond market impacts anticipated, it shows that (absent future surprises) overall losses from hurricane Milton are set to be very manageable for cat bond fund managers and their investors.

At yesterday’s pricing, the Swiss Re Capital Markets team has marked the Swiss Re Global Cat Bond Total Return Index down by 1.34%.

That index tracks the entire outstanding catastrophe bond market, so across the full range of perils and regions. It’s the best proxy for the hit or drawdown to the catastrophe bond market after an event like hurricane Milton.

FULL ORIGINAL PUBLICATION HERE

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