Cat bonds deliver in 2025. Demonstrate low correlation, spreads exceed high yield: Swiss Re

The catastrophe bond asset class continued to deliver for its investors through the first-half of 2025, exhibiting low correlation with broader financial markets, while spreads continue to track at levels that exceed those seen in high yield benchmarks, Swiss Re Capital Markets has reported.

In its latest Insurance-Linked Securities Market Insights report, the Swiss Re Capital Markets team discuss the volatility seen in global financial markets through the first-half of this year.

The company explains, “Despite broader financial market volatility driven by factors such as tariffs and foreign exchange fluctuations, the catastrophe bond market has once again demonstrated its low correlation to these macroeconomic events.

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