Introduction
Catastrophe bonds (cat bonds for short) have received significant interest in recent years, with 2023 breaking the record for total issuance at US$16.45 billion (previously set in 2021). We believe this trend is likely to continue as the first half of 2024 surpassed the prior year’s first-half record. As of the time of this writing, the size of the market (capital outstanding) has grown about 32% since the end of 2021, while yields are at attractive levels last witnessed in 2012.
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