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Increasing cat bond premiums & liquidity drive secondary prices lower

Catastrophe bond funds have faced pressure on positions in May thanks largely to increasing cat bond spreads, as the secondary market responded to primary issuance premiums, as well as high levels of liquidity that can impact values of positions.The result is that the share of outstanding catastrophe bonds that were read the full article →

Distressed Caelus, Citrus, ResRe cat bonds trade at rock-bottom prices

A number of at-risk of loss catastrophe bonds have been traded at rock-bottom distressed prices, suggesting investors have sought to offload bonds they believe will face a total loss, while a buyer (perhaps a single investor) is willing to bet there could be some improvement in the outlook.The catastrophe bonds read the full article →

Cat bond portfolios benefit from January price recovery

Catastrophe bonds experienced a price recovery in January, promising to help cat bond funds and investors to a stronger month of returns following a quarter where active selling drove prices lower and the cat bond market's total-return had suffered.Some cat bond funds have reported better than 1% returns for the read the full article →

Cat bond sell off adding mark-to-market pressure

The recent selling off of catastrophe bonds, which has largely provided a mechanism for ILS fund managers to free up capital to put towards renewal deals, has resulted in much higher secondary market trading volumes but this has added mark-to-market price pressure and as a result dented total returns.In a read the full article →

Cat bond liquidity benefits evident, as ILS funds sell to free up capital

Trading of catastrophe bonds in the secondary market has increased in the last fortnight as some ILS fund holders free up capital in advance of the approaching reinsurance renewals, so the benefits of the liquidity within these the fully securitized instruments becomes evident again.Cat bonds have repeatedly demonstrated their value read the full article →

Faster information flow would help ILS secondary trading efficiency

Speaking at the recent SIFMA IRLS 2018 conference in Miami, insurance-linked securities (ILS) market participants and experts highlighted the benefit of increasing the speed of information flow to the market, something which could help the secondary market operate more efficiently when disaster strikes.In light of 2017 catastrophe events, a panel read the full article →

Unusual levels of cat bond trading recorded on TRACE

An interesting burst of catastrophe bond trading has been recorded on the U.S. Financial Industry Regulatory Authority, Inc. (FINRA) Trace Reporting and Compliance Engine (TRACE) this week, with a high volume of trades and a high number of cat bond names changing hands across just two days.The secondary market for read the full article →

EU ILS trading desks have to report secondary trades under MiFID II

All broker trading desks for catastrophe bonds and insurance-linked securities (ILS) in the UK and Europe may have to report their secondary trade information to the U.S. Financial Industry Regulatory Authority, Inc. (FINRA) Trace Reporting and Compliance Engine (TRACE), as from January 3rd 2018 under the new MiFID II regime.In read the full article →

ILS cash balances help to stimulate cat bond trading in July

According to Artemis sources, the cash balances at some insurance-linked securities (ILS) funds remain high and so there has been a reasonable amount of activity in the secondary catastrophe bond market as some ILS fund managers look to deploy capital raised for the renewals that they failed to deploy.We're told read the full article →

Opinions differ on ILS secondary market trading activity in H1 2017

The record-breaking volume of catastrophe bond and insurance-linked securities (ILS) issuance in the first-half of 2017 has driven differing opinions on the trading activity in the secondary marketplace, according to recent ILS reports from Aon Securities and Swiss Re Capital Markets.The ILS and capital markets arm of reinsurance giant Swiss read the full article →