collateral pools

In October 2016, the U.S. Money Market Fund (MMF) industry changed dramatically with new requirements for U.S. institutional prime and institutional municipal MMFs becoming effective. In our opinion however, thanks to a carve-out for U.S. government and Treasury funds, the insurance-linked securities (ILS) markets needn’t lose sleep over these changes.

With the growth of the collateralized reinsurance and insurance-linked securities (ILS) market continuing apace, at a time when broader financial markets and the investment environment can be challenging, it is vital to consider how collateral pools for ILS transactions are managed and allocated.