Comments on: Upsizing insurance-linked security deals is the order of the day http://www.artemis.bm/blog/2009/11/27/upsizing-insurance-linked-security-deals-is-the-order-of-the-day/ The Alternative Risk Transfer, Catastrophe Bond, Insurance-Linked Securities and Weather Risk Management Blog Mon, 06 Feb 2012 19:41:29 +0000 hourly 1 http://wordpress.org/?v= By: Boslino http://www.artemis.bm/blog/2009/11/27/upsizing-insurance-linked-security-deals-is-the-order-of-the-day/#comment-21380 Boslino Mon, 30 Nov 2009 17:36:28 +0000 http://www.artemis.bm/blog/?p=1522#comment-21380 Given the high spreads on these transactions it's no surprise that the new issuances are over-subscribed. New transactions are still being placed at spreads higher than their peak post the 2004 and 2005 losses - it's no wonder that the investor base are filling their boots. It's a clear indication that we are not in an equilibrium situation - there is excess supply over demand. Until the spreads being charged on these transactions fall then we won't see the size of the overall market increase. Given the high spreads on these transactions it’s no surprise that the new issuances are over-subscribed. New transactions are still being placed at spreads higher than their peak post the 2004 and 2005 losses – it’s no wonder that the investor base are filling their boots.

It’s a clear indication that we are not in an equilibrium situation – there is excess supply over demand. Until the spreads being charged on these transactions fall then we won’t see the size of the overall market increase.

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