Secondary market sales pushing down cat bond pricing: Twelve Capital
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Secondary market sales pushing down cat bond pricing: Twelve Capital

Martha Muir
28 March 2022
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A flurry of selling in the secondary cat bond market is causing “weakness in pricing”, according to a note by Twelve Capital, as sources suggested investors are moving to free up capital for what is expected to be a bumper pre-hurricane season phase.

Deals held in Twelve’s UCITS Cat Bond strategies now have an average spread of almost 550 basis points (bps) above money market rates, an increase of nearly 80bps from a couple of weeks ago.

The

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NewsTwelve CapitalCatastrophe bonds
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Martha Muir
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