cat bonds News

Why Catastrophe Bonds Are Anything But a Disaster: Viewpoint

Leave it to catastrophe bonds to be among the most well-functioning debt markets out there. Issuance of “cat bonds” has climbed to more than $11 billion this year, about the same as this time in 2017, when sales hit a …

Catastrophe Bond Managers Put Hurricanes Behind Them, Plan New Launches

Hedge funds and other managers of catastrophe bond funds racked up some of the worst losses in more than a decade from this year’s hurricanes and wildfires. But a year that is shaping up to be the costliest on record …

How Hurricane Harvey Is Affecting Catastrophe Bonds

Bonds tied to weather risks tumbled the most in seven months as Hurricane Harvey advanced on Texas’s Gulf Coast. The Swiss Re Cat Bond Price Return Index dropped 0.44 percent this week, the steepest decline since January. The benchmark, which …

Catastrophe Bonds Fell Most in 4 Years on Hurricane Matthew Risk

Bonds tied to weather risks tumbled the most in four years as Hurricane Matthew lashed Florida. The Swiss Re Cat Bond Price Return Index dropped 1.7 percent last week, the steepest decline since Superstorm Sandy in 2012. The benchmark, which …

RMS: Cat Bond Analysis Reveals Market Predictions of Price Bottom Are Optimistic

Return relative to risk values for catastrophe bonds at current prices are actually higher in 2015 than they were last year, even though recent market commentary suggests that market prices have stabilized, according to research by RMS, the Newark, Calif.-based …

New ILS Records Set During 12 Months Ended June 30: Aon Securities Report

Annual catastrophe bond issuance reached $7.0 billion – a decrease on the record-breaking prior year ($9.4 billion), yet still the third highest annual issuance in the sector’s history, according to Aon Securities, the investment banking division of Aon Benfield. Twenty-five …

Weather Derivatives Backed By Climate Change Clamor

According to William W. Windle, managing director of Munich Re Trading LLC, business has been brisk lately in the weather derivatives market. There are many reasons for this, and while Windle may wince at any suggestion that the current weather …

Hannover Re: Capital Markets Are ‘More Friend Than Foe’ to Reinsurers

Pension and hedge funds flush with cash and hungry for yield are creating a market for reinsurers willing to look past the price cuts these investors have inflicted on traditional catastrophe coverage. The growth of insurance-linked products that allow investors …

A.M. Best: Reinsurers Need Underwriting Discipline in Competitive Market

Increasing competition and lower underwriting margins in the reinsurance market highlights the importance of disciplined underwriting, according to an A.M. Best briefing entitled “Global Reinsurers: Who Will Gain Despite All the Pain?” “The market is expected to remain challenging in …

Willis Sees Catastrophe Bonds Setting Record This Year After Busy Q2

The largest ever volume of non-life catastrophe bonds was issued during the second quarter of 2014 (Q2), according to a report by Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings. The Willis report on insurance-linked securities found …