securitization

An open letter from the American Securitization Forum (ASF) to the U.S. government agencies concerned with the regulation of financial markets and the creation of the Dodd-Frank reforms requests that any new credit risk retention regulations should take into account the needs of niche securitization sectors. One of those niche securitization sectors mentioned in the […]

Standard & Poor’s has issued a report which reiterates that one of the key exposures in a securitization transaction (that includes insurance-linked securitization through catastrophe bonds) is counterparty risk. The risk of a counterparty being unable to meet its obligations within a transaction is central to S&P’s analysis of creditworthiness.

The Crystal Credit transaction issued by Swiss Re to provide it with cat bond type credit reinsurance protection through securitisation seems to be destined to default. We’ve covered it a number of times (previous coverage here) over the last couple of years during which time it has been downgraded due to risk of default.

The Reserve Bank of India (RBI) has said that it wants banks and non-banking financial companies to use securitisation only for risk transfer purposes and not ever for profit booking.

Standard & Poor’s has delivered its latest update on the Crystal Credit Ltd. transaction which transferred a portfolio of Swiss Re’s credit reinsurance treaty risk to the capital markets via an insurance linked securitization. Losses on those treaties have been high and the transaction has already had its ratings downgraded by S&P. They’ve been delivering […]

There was a time in this market when talk of a downgrade or loss would have stimulated talk of the collapse of the catastrophe bond and the failure of the alternative risk markets to protect its investors. I’m pleased to say that the market and its observers seem to have matured enough to realise that […]

In an article published on Bloomberg news today Allianz spokespersons have called for the catastrophe bond market to become more standardised and affordable. I don’t think they’ll get much argument there from anyone involved in this market. Standardisation would open the door to quicker issuance, more transparency and increase affordability by making it much easier […]

Back in August I wrote about the downgrade of notes in the credit reinsurance securitisation Crystal Credit which was issued by Swiss Re in 2006. At the time things were looking very bad for Crystal Credit and Standard & Poor’s had downgraded the notes which were designed to provide Swiss Re with cat bond type […]

A report published today by the International Association of Insurance Supervisors (IAIS) concludes that while the market for transferring risks to the capital markets is still relatively small when compared to traditional re/insurance it is likely to continue its trend of upward growth both in new business and eroding the market share of traditional reinsurance […]

When I first became interested in alternative risk transfer and insurance linked securitization every research paper on the subjects mentioned the infamous ‘Bowie Bonds’ that rock star David Bowie issued to securitize his back catalogue receipts. Now this financial innovation, which helped to lead the way for securitization deals in the insurance sector, has been […]