The overall yield of the catastrophe bond market stood at 10.44% at the end of February 2025 according to data from specialist manager Plenum Investments, with the company explaining that opposing forces are driving the cat bond market yield sideways at this time.
In late 2024, high-demand for catastrophe bond investments had compressed risk spreads resulting in the overall yield of the catastrophe bond market falling back into single digits at 9.94% by the end of December 2024.
Then, after the impactful California wildfires in January caused price adjustments in the catastrophe bond market, the overall market yield ended that month back in double-digit territory, at 10.34% in USD.
Through February, opposing forces were in-play, resulting in the catastrophe bond market yield being relatively flat and ending the month at 10.44% in USD.
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