The Swiss Re cat bond Index has achieved a record-breaking performance in any half-year ever. It is probably the most widely-used benchmark for insurance-linked securities.
The Swiss Re cat bond index is widely used as a benchmark to measure the total returns generated by the market for outstanding cat bonds.
Reflecting the higher spreads available in catastrophe bonds and some performance delivered by the continued recovery in values of some cat bond positions that proved unaffected by last year’s hurricane Ian earlier this year, the Swiss Re cat bond Index has soared to a record level.
The Swiss Re cat bond index will reach 5.00% by the end of 2023’s first quarter.
When we first reported the Index, around the middle or May, it had already increased to 7.55%. This was the highest return the Swiss Re Global Cat Bond Index has ever achieved since 2013.
After a very strong month in both May and in June, with a return of 10.34% in the middle year, so far, the Swiss Re cat bond index in 2023 is close to the 2013 level and will soon surpass it.