USAA are preparing to market their 14th catastrophe bond. The most prolific single issuer of cat bond transactions is readying yet another Residential Reinsurance Ltd. deal to be issued under their Cayman Islands based SPV. Residential Re 2010 is expected to provide similar cover to their previous transactions (usually U.S. hurricane and earthquake risks).
Standard & Poor’s have provided an initial preliminary rating to each of the three tranches of notes. Class 1 notes are rated ‘BB’, Class 2 ‘B+’ and Class 3 ‘B-‘. We don’t yet know the size of the transaction but more details are due next week and we’ll update you then. It will be a three year deal due to end in June 2013.
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