The catastrophe bond market is thriving, and sponsors are finding continued strong demand for a diversifying set of risks, according to Fitch Ratings.

A major factor in this ability to shape the bonds is that investors are finding capital appreciation on their investments, a Fitch report says.

"Bond demand is underscored by new issues that have been consistently oversubscribed, with many experiencing 10% to 20% growth above their initial offering size," the report says.

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