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Cat bonds demonstrate positive diversification characteristics: Plenum

The catastrophe bond market has been demonstrating its "positive diversification characteristics" during the ongoing Covid-19 coronavirus pandemic, according to specialist ILS fund manager Plenum Investments.The catastrophe bond asset class is one of the best defensive asset classes in these times of financial market volatility and great uncertainty, with the cat read the full article →

Cat bond liquidity evident, as trading rises on Covid-19 volatility

The catastrophe bond market is once again demonstrating its financial liquidity, as secondary trading volumes have risen driven by certain investors looking to sell their positions at a time when volatility in the broader financial markets is extremely high due to the coronavirus pandemic.Catastrophe bonds have demonstrated their liquidity benefits read the full article →

Heritage’s Citrus Re 2017-1 A cat bond notes partially redeemed, $36.7m extended

One of the loss-exposed tranches of Florida focused property and casualty insurer Heritage Insurance Holdings, Inc’s Citrus Re Ltd. catastrophe bonds has been partially redeemed by investors, with now $36.7 million of collateral from the originally $125 million tranche still retained by the sponsor and its maturity further extended.The tranche read the full article →

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 →