Swiss Re Cat bond index fell for fifth month in a row

The Swiss Re Cat Bond Price Return Index fell 0.6% on June 18, the biggest drop in 20 months for the benchmark as forecasters predict a busier-than-usual Atlantic hurricane season, Bloomberg reports.

The index has declined five weeks in a row and is at the lowest since October.

“Investors have gotten spooked by these forecasts of a very active hurricane season,” said Peter Nakada, managing director at Risk Management Solutions, which builds models estimating storm damage. “They’re saying, ‘I’d rather take European wind risk than US hurricane risk.”