Cat bonds power through February, add next 1.2% in 14M rally
An unrelenting cat bond rally ran uninterrupted through February, pushing a market index of pure-play cat bond fund performance up another 1.15% for the month.
Pure-play cat bond investment funds have now risen every week for the 65 weeks since lows posted in the wake of hurricane Ian, a weekly index of bond fund pricing compiled by Plenum Investments shows.
The 21.6% cumulative post-Ian gain for the USD-denominated measure puts it 13.6% above pre-Ian levels as cat bonds distance all other ILS vehicles for investor favour.
Euro- and Swiss franc-denominated indexes have continued to lag the gains of the dollar measure so far in 2024, as they did throughout 2023.
The array of total return performance indexes, published weekly by Plenum Investments, are built on broker quotes for a group of 15 pure-play cat bond UCITS investment funds. Sub-indexes divvy up results by currency unit class and a classification of risk profile subject to semi-annual review.
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