Queen Street 2

Two Queen Street catastrophe bond transactions, sponsored by reinsurance firm Munich Re, have been downgraded by S&P over a heightened risk that investors will not receive back 100% of the outstanding principal amount at maturity.

Another of reinsurer Munich Re’s catastrophe bond transactions has been adversely affected by the uncertainty over the U.S. debt ceiling. Queen Street II Capital Ltd. has suffered a loss of principal in the collateral account due to a decline in its per-unit mark-to-market value.

The Bermuda Stock Exchange (BSX) has issued a press release to announce that they have hit a record volume of insurance-linked securities (catastrophe bonds) listed on their exchange. The recent completion of the Munich Re issued Queen Street II Capital Ltd. transaction has taken the amount of cat bonds listed in Bermuda to $1.814 billion.

Munich Re is seeking to issue a new catastrophe bond under an Irish special purpose vehicle, Queen Street II Capital Ltd. This is Munich Re’s second Queen Street cat bond transaction, they issued €170m of catastrophe bonds under Queen Street Ltd. in March 2008. That was a three year deal so it’s expected that this new […]