HVRRF - Covid-Related Cat Bond And ILS Spread Widening Drove Inflows: Swiss Re
As the global effects of the Covid-19 coronavirus pandemic were being felt across financial markets earlier this year, the insurance-linked securities ((ILS)) market was not immune and Swiss Re notes that the dislocation caused ILS new issuance spreads to widen by 20% to 30%.
The uncertainty that "riddled" the global financial markets spilled over into the ILS space, causing challenges for the issuance of catastrophe bonds and other ILS structures for a time.
Depending on the risks being offered, ILS and cat bond new issuance spreads widened by as much as 30%, reinsurance firm Swiss