Bookrunner

The investment bank or banks responsible for managing the offering (the “book”) of a new security, such as a catastrophe bond or other ILS arrangement.

They market and offer the deal to investors, while also managing feedback from investors on pricing guidance and helping to derive the final pricing of the risk interest spread (in the case of ILS or cat bonds).

Often also called a placement agent, these specialised banking units are often located within reinsurance brokers, reinsurers, or other global investment banks.

Some cat bond and ILS transactions come with a sole bookrunner, some with a lead, and some with joint bookrunners that also offer the securities to their investor contacts.