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 →

Exchange-traded weather insurance products set for launch in India

Once again the discussion of exchange-traded weather risk management products for Indian farms, companies and insurers has come to the fore, but this time the plan is for a product to be launched after September of this year. The National Commodity and Derivatives Exchange (NCDEX) of India has been developing weather-index read the full article →

Slower cat bond trading last week, again focused on higher coupons

Trading of catastrophe bonds in the secondary market was a little slower last week, with just four bond trades recorded by FINRA's TRACE system. However the focus remains on higher coupon cat bonds, as some investors snap up any that are offered in the market. In recent weeks there has been read the full article →

High-yield cat bonds feature again in last week’s secondary trades

Once again, the last week has seen an increasing focus on higher yielding catastrophe bond notes in the secondary trading market, as investors seek to maximise their returns with any opportunities to buy notes that yield above the average of recent new issuance. This has been a trend since the start read the full article →

More downward movement in secondary cat bond trade prices

Many of the secondary market catastrophe bond trades recorded by FINRA’s TRACE system in the last week have again been at lower price levels. Meanwhile the focus on short-dated bonds continued, with a number changing hands. It’s important to note that the trades recorded by FINRA are only those transacted across read the full article →

Secondary cat bond marks continued decline in last week

Once again, every catastrophe bond trade recorded by FINRA's TRACE system in the last week is at a lower price level than the cat bond's previous trade. Fewer of the short-dated cat bonds traded, with more of a focus on higher-yield 2016 maturing bonds. Artemis has recorded over $2.8 billion of read the full article →

Short-dated, higher-yielding catastrophe bonds continue to trade

Once again the last seven days has seen a number of short-dated, soon to mature catastrophe bonds, which offer higher yields than recent primary issuance, traded in the secondary market, as investors continue to be attracted to these opportunities. Short-dated cat bonds have seen an increasing amount of trading since the read the full article →