Cat-Bond Market Rises to Record With $8.5 Billion of Issuance

Catastrophe bonds broke a record during the first half of the year with about $8.5 billion of new securities issued, according to a report from Swiss Re AG.

The insurance-linked securities market could end up with more than $10 billion in issuance for the full year, the reinsurer said in a report released Wednesday. The market was helped in part by older securities that matured and gave investors more money to put back to work, as well as demand from those seeking to diversify risks, according to Swiss Re’s Judy Klugman.

The performance through June of the catastrophe-bond market ...