Catastrophe bond pricing becoming decoupled from reinsurance market pricing

Catastrophe bonds are having a great year so far with issuance hitting record levels in the first quarter and extremely healthy in Q2, details on all the cat bond deals to come to market can be found in our Deal Directory. The wider financial press has been complementary about this read the full article →

Would innovation in issuance make the cost of catastrophe bonds more competitive with reinsurance?

The recently closed Embarcadero Re Ltd. catastrophe bond, which saw the California Earthquake Authority transfer $150m of earthquake risk directly to the capital markets through their own SPV, shows that cat bond coverage can be comparable (and even cheaper) than the equivalent reinsurance coverage. The CEA transaction didn't utilise a traditional read the full article →