Catastrophe bond yields have improved for the first time since 2012 as a more efficient supply/demand balance takes form in the space, according to the Co-Founder and Managing Principal of Fermat Capital Management, Dr. John Seo. Resulting in cat bond transactions trading at a discount to their original price issue, something Seo says hasn’t taken place in the market since late September 2012. And the positive cat bond issuance and pricing discipline trend witnessed throughout 2014 appears to be continuing in 2015, Seo continues to explain. Data from the Artemis deal directory shows that first-quarter 2015 cat bond issuance was a record, totalling almost $2.1 billion. In recent years cat bond participants have had to deal with a lack of major, global catastrophes, something that has impacted reinsurance and primary insurance sectors also.