Secondary cat bond trading rises as $3.3bn May issuance drives portfolio changes

The volume of catastrophe bond notes traded on the secondary market rose again in May 2021, as insurance-linked securities (ILS) fund managers and cat bond investors adjusted their portfolios to accept the strong almost $3.3 billion of primary issuance seen during the month.

May 2021 saw the highest level of primary issuance of catastrophe bonds so far in 2021,.

The close to $3.3 billion of new cat bonds issued came from 9 144A cat bonds with a US peril focus as you’d expect at this time of year, as well as 1 private cat bond deal, according to the Artemis Deal Directory.

That eclipsed April’s almost $2.5 billion of issuance and March’s $2.9 billion of issuance (both including some mortgage ILS issuance) and this run of strong issuance months has made for steadily rising secondary cat bond trading as well.

FULL ORIGINAL PUBLICATION HERE

Tags: No tags
0

Add a Comment

Your email address will not be published. Required fields are marked *