Catastrophe bond sales reach record highs in May, with $4B issued and a 38% increase in issuance year-to-date.

Catastrophe bond sales hit record highs as markets prepare for an active hurricane season. Issuance of cat bonds, which allow insurers to transfer risk to the capital markets, are 38% higher this year through May than in 2023, and the $4B issued in May is the highest monthly volume in history. This market, which supported the world's top-performing hedge fund strategy last year, offers investors high potential gains if no catastrophe occurs, but substantial losses if one does.

June 09, 2024
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