After seeing their prices drop significantly in the wake of the US winter storms and severe freezing weather, a number of the exposed aggregate catastrophe bond tranches have now experienced a meaningful price recovery in the latest cat bond secondary market price sheets.
As we explained last week, a number of winter storm exposed aggregate catastrophe bonds from sponsors including Allstate, Nationwide and USAA saw a significant dent in their secondary market pricing as cat bond investors tried to evaluate the potential for losses to the reinsurance layers covered.
