(Bloomberg) – Catastrophe-bond issuance slipped to its lowest level since 2011 over the past year as the securities outperformed the S&P 500 Index, according to insurance broker Aon Plc.
About $5.2 billion in cat bonds was issued in the 12 months ending June 30, a decline of $1.8 billion from a year earlier, Aon said in a report issued Thursday. Some investors stayed away from the securities early this year as they awaited other opportunities, according to the report.
"The overall lower issuance levels were driven by a number of factors including competition from traditional markets," Aon said. "Despite the lower supply of catastrophe bonds for sale, many investors were reluctant to increase bids, preferring to hold onto cash in anticipation of new issues."
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