The overall catastrophe bond market yield or coupon available to investors continued to rise through May, as expected seasonal spread widening lifted total returns to 9.42% by May 29th. But this remains ~14% behind the level seen a year earlier due to softer pricing across reinsurance and cat bonds, the latest data from Plenum Investments shows.
Cat bond risk spreads began moving slowly higher in February and this trend has now continued through to late May with slow-paced seasonal widening of spreads. [...]