Disaster bond maturities are a big supply of liquidity and money for the market, which is usually reinvested into new cat bond points and as such the schedule of upcoming cat bond maturities is a key indicator for sponsors and broker-dealers, in addition to cat bond funding fund managers.
To assist our readers perceive what’s coming, we’ve added a brand new interactive chart to our suite of catastrophe bond and insurance-linked securities (ILS) data visualisations and analytical tools.
Now, with Artemis, you can view and analyse the upcoming catastrophe bond maturity schedule by quarter and by month, to assist in your decision-making and to better-inform market timing.
Because the disaster bond market has grown over latest years, there are intervals of scheduled cat bond maturity the place a big quantity of threat capital will likely be freed up, get returned to traders and cat bond asset managers, needing to be redeployed the place issuance ranges enable.
That is each necessary for traders and fund managers to maintain watch of, in order that they time new investor inflows with intervals of sturdy maturities in thoughts, in addition to for these sponsoring and bringing new cat bonds to the market.
In reality, Artemis’ information, which you’ll see above and can be analysed using our new interactive chart here, reveals that because of rising issuance the second-quarter cat bond maturity load is changing into actually fairly vital.
It’s because Q2 has all the time been one of many busiest quarters for disaster bond issuance and because the market’s exercise stage has elevated, so too does the forward-maturity schedule for that interval with the vast majority of offers being a sure variety of mounted calendar years in size.
Which is why, as our catastrophe bond maturities chart reveals, Q2 2025 sees over $5.8 billion of cat bond maturities scheduled, however Q2 of 2026 and 2027 each see over $7 billion every.
The peak month for upcoming catastrophe bond maturities is currently June 2026, with simply over $4.4 billion of cat bonds scheduled to mature in it.
Intervals of serious cat bond maturities can lead to some unfold compression, as cat bond fund managers and traders look to place money again to work.
They’ll additionally end in new issuances changing into oversubscribed extra typically, making for enticing intervals of issuance circumstances for sponsors to enter the market with a brand new deal, hoping for stronger execution as traders and fund managers search to place their liquidity again into the market.
As cat bond issuance will increase and so too we get bigger bursts of maturities, the power of the market to recycle money into new offers and by way of the secondary cat bond market buying and selling desks turns into more and more necessary.
Effectively and successfully recycling capital is a crucial part of the position of an ILS fund supervisor.
Some would possibly say, it may be less complicated to recycle capital from maturing offers within the disaster bond market, the place there’s secondary liquidity and issuances (renewals) many of the approach by the yr, than within the conventional reinsurance and retrocession market the place exercise stays so targeted on only a handful of key renewal dates.
We hope our new chart displaying the forward-schedule for catastrophe bond market maturities proves useful and we’ll replace it with each issuance and maturity, to maintain the info correct and recent for our readers.
The Artemis Deal Directory lists all disaster bond and associated transactions accomplished for the reason that market was shaped 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 record.
Download our free quarterly catastrophe bond market reports.
We monitor catastrophe bond and related ILS issuance data, essentially the most prolific sponsors in the market, most energetic 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 gives 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.
