Cat bond market poised to boom in 2013
Increasing investor demand and new sponsor opportunities look set to make 2013 a bumper year for the catastrophe bond market. Thomas Whittaker reports
After five years of economic and environmental challenges the catastrophe (cat) bond market appears to be getting back on its feet. After new issuance volumes plunged in 2008 as the economic crisis hit, from the record high in 2007, volumes have slowly clawed their way up, reaching $6.28 billion (£4 billion) in 2012 – the second highest annual issuance on record.
Market participants say strong issuance volumes are expected throughout 2013, as sponsors look to secure capacity ahead of the US
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