Catastrophe bond fund strategies in the UCITS format averaged positive returns for the month of January 2025, despite the effects of wildfire related mark-downs to exposed positions, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.
As we had reported before, the Los Angeles, California wildfires had already had a minimal effect on the UCITS cat bond fund cohort earlier in January.
We had estimated the write-down across the cat bonds tranches with more meaningful price movements at around $200 million, after the January 17th marks.
But, as we reported last week, additional price declines were seen in the secondary marks made at the end of last month.
Resulting in the first ever negative January for the cat bond market benchmark, the Swiss Re Index.
FULL ORIGINAL PUBLICATION HERE
