In this interview with Artemis, Shiv Kumar, President, GC Securities,* describes how he expects momentum in the catastrophe bond market to continue advancing through the rest of 2024.
“We see a ‘risk on’ sentiment in the market at this time. Investors have easily absorbed record issuance in 2023 as well as record issuance so far in 2024,” Shiv explained. “We are estimating total alternative capital to grow to be between USD 105-110 billion, and total outstanding 144A catastrophe bond limit to reach around USD 50 billion by year-end.”
He also noted how the market has grown in capital as well as participation.
“Both the breadth and depth of the market are increasing. In terms of breadth, almost 50 new sponsors have accessed the cat bond market since 2020, and almost half of them have returned with subsequent issuance. In terms of depth, we have seen multiple transactions this year at or above USD 1 billion issuance size.
*GC Securities is a division of MMC Securities LLC, a US-registered broker-dealer and member of FINRA, the NFA and SIPC.