How do cat bond spreads compare to spreads on high-yield corporate debt?

Quarterly weighted-average spreads on issued cat bonds and option-adjusted spread on debt in ICE BofA US High Yield Index from 2021 onwards

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- Cat bond data weighted by volume (in $) and plotted at each quarter end; intermediate points interpolated
- ICE BofA US High Yield Index contains USD-denominated, below-investment-grade-rated corporate debt publicly issued in the US domestic market

Source: Insurance Insider; FRED