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

Quarterly weighted-average gross spreads on issued cat bonds and option-adjusted spread on debt in ICE BofA US High Yield Index in 2023

- 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 ILS; FRED