secondary cat bond

The secondary market for trading in catastrophe bonds and insurance-linked securities (ILS) saw relatively brisk activity in March, as investors juggled portfolios to accommodate new issues, but with the focus and demand for higher-yielding notes rising once again.

Activity in the secondary trading market for catastrophe bonds and insurance-linked securities (ILS) was a little slower in February, partially due to lower primary cat bond issuance but also as the month is typically one of consolidation.

A reasonably active January in the secondary market for catastrophe bonds and insurance-linked securities (ILS) reflected a number of trends, not least ILS investors adjusting portfolios post-reinsurance renewals and a shift towards collateralized reinsurance investments.

The secondary market for trading in catastrophe bonds and ILS proved to be a “valuable source of liquidity” in 2014, as investors sought to free up capital to invest in the year’s record new issuance, according to Aon Benfield Securities.

An active month of trading activity in the secondary market for insurance-linked securities (ILS) and catastrophe bonds was observed again in December, as ILS investors continued to free up capital for new cat bonds and reinsurance renewals.

The month of November saw strong trading activity in the secondary market for insurance-linked securities (ILS) and catastrophe bonds as investors looked to capitalise on yields from short-dated cat bond notes which are soon to mature.

The anticipation of a brisk last two months of the year, with reports that a number of billion dollars worth of new catastrophe bonds may come to market, stimulated secondary ILS trading activity in October despite the primary market remaining quiet.

The month of September saw lighter secondary market trading for positions in catastrophe bonds and insurance-linked securities (ILS), but stronger returns were again seen as outstanding cat bond and ILS marks continued to rise due to seasonality.

The secondary market in catastrophe bonds and insurance-linked securities (ILS) saw strong seasonal price rises in August, as the market made much larger gains than recent months, leading to more pleasing returns for ILS and cat bond fund managers.

The secondary market in catastrophe bonds and insurance-linked securities (ILS) saw prices rebound more strongly in July, after a couple of months of slower pricing movements at trading desks.