secondary cat bond

A notable surge in secondary catastrophe bond market trading in the final days of 2025 suggests a “robust year-end repositioning”, according to Azimut Switzerland SA’s Isacco Loconte, who highlighted a number of key trends seen when analysing the period of more elevated cat bond market liquidity.

Siena Capital Group, LLC, a private investment office with a focus on special situations and that counts former Gallagher Securities trading and distribution specialist Jack Stone as a Partner, is targeting the catastrophe bond and insurance-linked securities (ILS) market with a plan to launch a daily pricing platform later this year.

Miami International Holdings, Inc. (MIH) has announced that it has launched a fully-integrated trading, clearing, settlement and depository technology platform for the Bermuda Stock Exchange (BSX), which is a wholly-owned subsidiary of MIH, in a move that marks a significant step in modernising the BSX’s market infrastructure.

The entry of market makers to enhance liquidity options in the secondary market for trading catastrophe bonds would be a dream come true, speakers suggested at the SIFMA ILS 2025 conference in Miami yesterday.

Catastrophe bond fund manager Icosa Investments has highlighted current uncertainty over the level of losses the market may face from hurricane Milton, but notes that while some principal losses seem likely there remains a high level of uncertainty over certain structures, especially aggregate cat bonds that have much of their risk periods left to run.

According to analysis by Morningstar DBRS, the total private and public insurance market loss from hurricane Milton is expected to fall in the upper-half of a $30 billion to $60 billion range, with flood insurance losses to the NFIP expected to be up to $10 billion of the total.

In the wake of hurricane Milton’s landfall and damaging impacts on the state of Florida last week the catastrophe bond market fell by 1.34% and a range of outstanding cat bonds had their secondary marks priced down, some more considerably than others.

Selling pressure in the secondary market for catastrophe bonds appears to have resulted in record levels of trading activity during the month of May, according to Florian Steiger, CEO of specialist cat bond investment fund manager Icosa Investments AG.

New rules have been implemented in the United States by the Securities and Exchange Commission (SEC) that shorten the standard settlement cycle for most broker-dealer transactions from the current “T+2” to “T+1”, but in our discussions with catastrophe bond trading desks and market participants, the general feeling is one of readiness.

Swiss Re Capital Markets (SRCM) observed an increase in the number of secondary market trades in Q4 of 2023, indicating an “encouraging sign” that the market has fully-recovered from the capacity constraints and loss uncertainty it had faced following Hurricane Ian.