The opposing forces of seasonality and demand continued to drive the overall yield of the catastrophe bond market sideways through March, ending the month at 10.43% so remaining relatively flat over the period, according to the latest data from Plenum Investments.
Recall that, back in late 2024, high-demand for catastrophe bond investments had compressed risk spreads somewhat in the sector, resulting in the overall yield of the catastrophe bond market falling back into single digits at 9.94% by the end of December 2024.
The impactful California wildfires in January caused price adjustments in the catastrophe bond market, lifting the overall market yield that month back into double-digit territory, at 10.34% in USD.
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