Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Pricing drops again on AIG’s Tradewynd Re 2013-2 cat bond


Yesterday, we wrote that AIG’s latest catastrophe bond transaction, Tradewynd Re Ltd. (Series 2013-2), had more than doubled to $400m, while at the same time pricing appeared to have settled at the upper end of the tightened range.

However, sources told Artemis late yesterday that price expectations for two of the three remaining tranches of notes to be issued by Tradewynd Re in this 2013-2 cat bond had seen a further price drop.

The three tranches of this cat bond now look like this:

Class 1-A – still $100m in size and pricing unchanged at 6.25%.

Class 3-A – still $160m in size. But price guidance reduced to the lower end of the originally marketed range, at 6.25%.

Class 3-B – still $140m. Price guidance reduced down to the lower end of the original range at 7%.

So now only the Class 1-A tranche looks likely to price off the bottom of the range the deal was originally marketed with, although it is still below the mid-range of initial price guidance.

We’ll update you when final price details are available. In the meantime read all about Tradewynd Re Ltd. (Series 2013-2) in our Deal Directory.

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