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Cat bond risk spreads fell 9.5% in September, data show

By September 25, the catastrophe bond market’s overall coupon yield dropped to 8.74%, down from 8.87% at the August 28 level.

Reported · Written up by our desk · Reinsurance

Catastrophe bond insurance risk spreads declined 9.5% during September 2026, as wind seasonality set in and the cat bond market saw lower spread levels, according to data on cat bond yields from Plenum Investments as reported by Artemis.

Artemis said rising treasury yields helped offset the market impact by lifting the risk free rate of return on collateral, even as insurance risk spreads fell and coupon yields declined through the peak hurricane-season period.

By September 25, the overall coupon yield for the catastrophe bond market had fallen to 8.74%, compared with 8.87% on August 28, Artemis reported.

Insurance risk spreads ended September 25 at 4.57%, down 9.5% from the August 28 figure, Artemis added, attributing the decline to season pricing effects and lower spreads at issuance of recent new cat bonds.

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