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.


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