Despite softening spreads, cat bond risk premium remains among widest available: Sage Advisory

Despite softening spreads driven by record inflows of capital, catastrophe bonds continue to offer one of the widest net risk premia available across financial markets, according to a new report from Andrew Poreda, Vice President and Senior Research Analyst at Sage Advisory Services.

In the report, Poreda also highlights that catastrophe bonds delivered a steady 7.6% return across eight consecutive months in 2026 with minimal volatility.

Sage Advisory ventured into the insurance-linked securities (ILS) market for the first time last year through its partnership with Cedar Trace Group, the Bermuda-based insurance, reinsurance and asset management specialist, that sees the two companies working together to create and deliver ILS-enhanced credit opportunities to investors.

FULL ORIGINAL PUBLICATION HERE