image credit: Pixabay

Winter storm exposed cat bonds stage partial price recovery

March 8, 2021

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.

Read More on Artemis BM