The overall yield of the catastrophe bond market increased to above the 11% mark in June 2025, the first time it has surpassed that level since October 2024, but with the hurricane season now underway the expectation is for the discount margin to decrease, according to cat bond fund manager Plenum Investments.
Catastrophe bond market yields reached 11.12% at the middle of June 2025, but declined slightly towards the end of the month, to 11.03% as of June 27th.
Notably and indicative of softer pricing conditions in the catastrophe bond market, as well as lower risk-free collateral returns, the overall yield of the cat bond sector now stands some 19% lower than it was a year ago (13.69% at June 28th 2024).
FULL ORIGINAL PUBLICATION HERE