Munich Re have issued a press release stating that demand for catastrophe bonds remains high even considering the unprecedented financial turmoil being experienced by the markets.
The fact that cat bonds risk is not correlated to other securitised products is keeping them in favour with hedge funds and other asset managers who are seeking to diversify their portfolios.
More good news for our market given the credit crunch, however issuance of catastrophe bonds has definitely slowed and requires a hardening of reinsurance prices to kick start cedent interest again.
Yahoo has the full press release.
