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Cat bond trading activity to increase as new issuance pipeline grows

The catastrophe bond new issuance pipeline is growing, according to sources, leading to expectations that the secondary market could face a particularly busy few months, as ILS funds and investors look to accommodate new cat bond deals and rebalance their portfolios.Cat bond issuance had been down year-on-year the first-half, as read the full article →

Beech Hill gets into cat bonds as Bonder moves trading desk

Beech Hill Securities, Inc., a New York based full-service broker-dealer now has a catastrophe bond trading capability.We can report that established New York based secondary cat bond market trader Craig Bonder has taken his trading desk operations and team to Beach Hill, expanding the range of asset classes that the read the full article →

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 →