ILS & cat bond issuers exempt from commodity pool designation: CFTC

The U.S. Commodity Futures Trading Commission has issued a letter providing no-action relief to insurance-linked securities (ILS) and catastrophe bond issuers seeking exemption from being treated as a commodity pool operator. The U.S. CFTC ’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued the letter on Friday, providing insurance or read the full article →

ILS and cat bond issuers may escape commodity pool designation

Back in October we wrote about an issue that had arisen which could affect issuers of catastrophe bonds and insurance-linked securities due to changing regulation in U.S. financial markets. Under the Dodd-Frank Act the definition of a ‘commodity pool’ was being expanded to include any entity which operates to trade read the full article →

Are insurance linked securities issuers commodity pools under Dodd-Frank?

Once again the changing regulatory environment under Dodd-Frank brings some uncertainty to the insurance-linked securities (ILS) market. The latest stems from the Dodd-Frank Act's expansion of the definition of a 'commodity pool' which can now be read to include any entity which operates to trade in swaps. At the same read the full article →

Babcock the first UK company to hedge longevity risks of it’s pension scheme

Babcock International Group, a leading UK based engineering support services company, has enacted a longevity swap to help it hedge the risks of longer life expectancies associated with it's pension scheme. In doing so it has become the first UK company pension scheme to enter the longevity swap market. Credit Suisse read the full article →

Munich Re and Tokio Marine in catastrophe swap deal

Munich Re and Tokio Marine Nichido Fire have closed a private catastrophe swap deal based on the Risk Management Solutions (RMS) Paradex-Europe Windstorm industry loss index. This transaction brings the total notional amount of risk transferred using Paradex to in excess of $250m. Having indices of losses available (via third-party sources) read the full article →