Cat bond demand strong in July and prices rise
Tuesday, 08 16 2016, Category: Insurance and Reinsurance, Country: World
Once again, July saw very strong demand for catastrophe bond investments with the secondary market feeling the effects of demand outstripping supply of new issuance, resulting in further price rises and an active cat bond secondary trading market.
Recent months have been characterised by growing catastrophe bond demand, as some investment managers seek to put capital raised to work and others look to adjust portfolios for diversification.
With the secondary market for catastrophe bonds often the only option for deploying capital or adjusting portfolios, around the reinsurance renewal seasons, it can see high levels of bids and demand, as we have seen lately.