The primary-quarter of 2024 has seen data fall within the disaster bond market and the interval is the primary time that the beginning months of the 12 months have ever seen over $4 billion of 144A disaster bond issuance, in response to Artemis’ information.
Our new quarterly disaster bond market report can be revealed subsequent week and it’ll overview all the quarter’s key cat bond issuance information factors. Be careful for our announcement subsequent week when it’s launched, or you can always find all of our quarterly cat bond market reports here.
However, our catastrophe bond market charts and visualisations are kept up to date as every new deal settles or old cat bonds mature, so you’ll be able to sustain with issuance because it progresses all year long.
Now, with the final two new disaster bonds of the first-quarter settling immediately, it’s clear from the information that Q1 2024 has set new data, a notable one in every of which we thought we’d spotlight immediately.
It’s the first first-quarter of any 12 months the place 144A disaster bond issuance has reached above $4 billion.
The earlier file was 2020, when 144A issuance reached $3.96 billion, so it’s solely only a file, however nonetheless a notable one we really feel.
This 12 months, January 2024 noticed the second highest stage of recent cat bond issuance on file for the month, however it’s actually March that has pushed the data.
March 2024 noticed virtually $2.3 billion of 144A disaster bonds issued, setting a brand new file for the month.
It’s an distinctive begin to the 12 months and now the market pipeline already has $1.84 billion of issuance scheduled for April, a few of which is nearly assured to upsize, some maybe considerably.
The file for April issuance was set in 2023 with simply over $2 billion of issuance, so we may simply see one other file month this 12 months.
2024 is on-track to be a really robust issuance 12 months and with a lot of bigger offers additionally anticipated and demand for reinsurance rising generally, there’s each motive to be optimistic {that a} new annual file can be set.
Simply final week, we polled our readers for his or her opinions as to how excessive 2024 disaster bond issuance may rise and greater than 35% of respondents stated they count on will probably be above $17 billion, whereas 16% count on $20 billion can be surpassed in 2024.
There’s a lengthy technique to go earlier than we attain that stage and we’ve an entire hurricane season forward of the trade.
However, the foundations have been set and with returns nonetheless significantly extra enticing than a number of years in the past and the price of threat switch within the cat bond market compelling for sponsors and providing actual worth by threat capital diversification, there’s each likelihood we hit these ranges and see a brand new file set this 12 months.
The Artemis Deal Directory lists all disaster bond and associated transactions accomplished for the reason that market was fashioned within the late 1990’s. The listing additionally lists the cat bonds ready to settle, that are highlighted in inexperienced on the prime of the listing.
Download our free quarterly catastrophe bond market reports.
We observe catastrophe bond and related ILS issuance data, essentially the most prolific sponsors in the market, most lively structuring and bookrunning banks and brokers, which risk modellers feature in cat bonds most frequently, plus a lot more.
Find all of our charts and data here, or by way of the Artemis Dashboard which supplies a useful one-page view of cat bond market metrics.
All of those charts and visualisations are up to date as quickly as a brand new cat bond issuance is accomplished, or as older issuances mature.
