Performance for the period was mainly attributable to coupon accruals, given the stabilisation in mark-to-market pricing experienced during March when compared to spread widening seen in the preceding few months.
Issuance activity remained strong during March, with the total volume of Cat Bonds issued YTD amounting to USD 2 bn. Diversification opportunities across the space remain attractive, with primary market activity including issuances of uncorrelated transactions covering risks such as Floridian hurricanes, US earthquakes, Japanese typhoons and others. In terms of pricing Dynamics, returns on a risk-adjusted basis continue to be stable and compelling. We do not anticipate any changes in the near future in this regard.
The fund is well positioned and maintains a low cash balance at this time. A further pipeline of new issuances is anticipated during Q2, as is typical for cedants sponsoring Cat Bonds prior to the hurricane season. The fund will selectively consider These opportunities and reallocate its holdings where appropriate. Efforts around sourcing of Private Cat Bonds continue and we aim to access these bespoke and attractive transactions before the hurricane season begins.