secondary cat bond

The catastrophe bond indices which track the price return and total return of the outstanding catastrophe bond market have continued to fluctuate over the last two weeks but a general upwards trend remains. When we looked at these indices two weeks ago, the primary cat bond issuance market was quiet, and the indices had experienced […]

The lack of primary catastrophe bond issuance, combined with continued high demand in the cat bond asset class from investors, has led to some unseasonal price movements on outstanding cat bonds in the secondary market recently. With investment managers loaded with cash from new and continuing inflows to the ILS and reinsurance-linked asset class from […]

2012 saw rollercoaster-like conditions for secondary catastrophe bond trading as the market saw ups and downs over the course of what was a very good year for primary cat bond issuance. With primary cat bond issuance high and capital readily available to put to work in new transactions at the start of the year, the […]

Lower than expected issuance levels of new catastrophe bonds and insurance-linked securities so far this year has made secondary cat bond trading opportunities elusive, according to one ILS fund manager. Investment managers are currently awash with excess cash, thanks to new capital inflows and money returned from maturing cat bonds. But this excess cash could […]

Both the primary and secondary catastrophe bond markets were subdued in December as the markets participants continued to assess the fall-out and industry losses that hurricane Sandy had caused. Many insurers and reinsurers had been forced to put their planning and purchasing of U.S. hurricane reinsurance and retrocession on hold and this is thought to […]

Reinsurance broker Guy Carpenter has added to its capital markets and insurance-linked securities team, bolstering its secondary catastrophe bond and ILS trading capabilities, with a new hire made towards the end of last year. Sung Yim, an ex-Goldman Sachs and secondary cat bond and ILS trading specialist, joined GC Securities as its first person dedicated […]

Normally by this stage of the month we have a pretty good idea how insurance-linked security and catastrophe bond funds have performed in the prior month, but this time Sandy has muddied the waters somewhat. ILS fund managers are being slower to publish their funds October returns as calculating the impact of mark-to-market losses caused […]

Last month the secondary catastrophe bond market slowed down, with trading volumes dropping considerably from the relatively active August according to market participants. The slowdown has a lot to do with seasonality, having just passed the peak of the hurricane season, and with no real impact from any storms, cat bond investors and traders are […]

September is one of the peak months of the U.S. hurricane season and so catastrophe bond issuance activity is typically slow and secondary market cat bond trading is often driven by the threat of any tropical storms approaching the U.S. coastline. This results in climbing secondary market prices, particularly in cat bonds with U.S. hurricane […]

Catastrophe bond market issuance is typically slow during the peak months of the U.S. hurricane season and 2012 has been no different. August saw no cat bonds complete during the month and just the one, Eurus III Ltd., which began marketing but completes this week. When primary issuance of cat bonds is low, sometimes the […]