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Cat bond spreads compress as issuance hits record highs in 2026

H1 2026 set new catastrophe bond market records, with the outstanding cat bond market at $65.6 billion.

Reported · Written up by our desk · Reinsurance

Catastrophe bond issuance under Rule 144A has continued to surge, and spreads have compressed, according to Artemis.

Artemis reports that the compression has been driven by a mix of softening reinsurance rates and strong capital and investor appetite, but Icosa Investments AG partner Dr. Raffaele Dell’Amore cautioned that issuance growth alone does not prove the trend is sustainable.

Speaking around the start of the reinsurance conference season, Dell’Amore said the key question is whether the investable opportunity set is expanding because cedents and new sponsors are expanding demand, or whether more capital is simply competing for the same pool of risk.

Artemis also notes that catastrophe bond issuance growth has increased heavily through 2026, with H1 2026 setting new market records, and that the outstanding catastrophe bond market stands at a record $65.6 billion.

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