The primary-quarter of 2024 has seen information fall within the disaster bond market and the interval is the primary time that the beginning months of the yr have ever seen over $4 billion of 144A disaster bond issuance, in accordance with Artemis’ information.
Our new quarterly disaster bond market report might be printed subsequent week and it’ll evaluate all the quarter’s key cat bond issuance information factors. Be careful for our announcement subsequent week when it’s launched, or you may all the time discover all of our quarterly cat bond market reviews right here.
However, our disaster bond market charts and visualisations are saved updated as each new deal settles or outdated cat bonds mature, so you may sustain with issuance because it progresses all year long.
Now, with the final two new disaster bonds of the first-quarter settling right this moment, it’s clear from the info that Q1 2024 has set new information, a notable certainly one of which we thought we’d spotlight right this moment.
It’s the first first-quarter of any yr the place 144A disaster bond issuance has reached above $4 billion.
The earlier report was 2020, when 144A issuance reached $3.96 billion, so it’s solely only a report, however nonetheless a notable one we really feel.
This yr, January 2024 noticed the second highest stage of latest cat bond issuance on report for the month, however it’s actually March that has pushed the information.
March 2024 noticed nearly $2.3 billion of 144A disaster bonds issued, setting a brand new report for the month.
It’s an distinctive begin to the yr and now the market pipeline already has $1.84 billion of issuance scheduled for April, a few of which is nearly assured to upsize, some maybe considerably.
The report for April issuance was set in 2023 with simply over $2 billion of issuance, so we might simply see one other report month this yr.
2024 is on-track to be a really robust issuance yr and with quite a few bigger offers additionally anticipated and demand for reinsurance rising basically, there may be each cause to be optimistic {that a} new annual report might be set.
Simply final week, we polled our readers for his or her opinions as to how excessive 2024 disaster bond issuance might rise and greater than 35% of respondents mentioned they anticipate it is going to be above $17 billion, whereas 16% anticipate $20 billion might be surpassed in 2024.
There’s a lengthy strategy to go earlier than we attain that stage and we’ve got a complete hurricane season forward of the trade.
However, the foundations have been set and with returns nonetheless significantly extra enticing than a couple of years in the past and the price of danger switch within the cat bond market compelling for sponsors and providing actual worth by way of danger capital diversification, there may be each likelihood we hit these ranges and see a brand new report set this yr.
The Artemis Deal Listing 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 high of the checklist.
Analyse the disaster bond market utilizing our charts and visualisations, that are saved up-to-date as each new transaction settles.
Obtain our free quarterly disaster bond market reviews.
We observe disaster bond and associated ILS issuance information, essentially the most prolific sponsors out there, most energetic structuring and bookrunning banks and brokers, which danger modellers function in cat bonds most incessantly, plus rather more.
Discover all of our charts and information right here, or through the Artemis Dashboard which gives a helpful 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.