Of course, one of the key attractions of ILS as an asset class is its very low correlation with wider financial market volatility. Catastrophe bond spreads fell during H1 2018 to pre-hurricanes Harvey, Irma and Maria levels, according to Swiss Re's H1 2018 ILS market update. The spread between the two bonds is now at its lowest level since September 2017, when Hurricane Harvey hit Texas. Swiss Re warned that if the attractiveness of the catastrophe bond market were to diminish, investors could invest capital elsewhere.
Catastrophe bond spreads fell during H1 2018 to pre-hurricanes Harvey, Irma and Maria levels, according to Swiss Re's H1 2018 ILS market update. The spread between the two bonds is now at its lowest level since September 2017, when Hurricane Harvey hit Texas. Swiss Re warned that if the attractiveness of the catastrophe bond market were to diminish, investors could invest capital elsewhere.