July 27th, 2009

Chart: 2Q2009 Cat Bond Pipeline

Posted at 12:53 AM ET

catbondpercentoftotalissue

Currently, two transactions are planned for the third quarter of 2009: one with European wind exposure and one with U.S. wind exposure. Traditionally the third quarter tends to be quiet, in part because of hurricane season and traditional cedent renewal dates. Historically, it accounts for only approximately 14 percent of risk capital issued (based on the period 1997 through 2008). If catastrophe bond market spreads decrease sufficiently, the door may open for sponsors that had considered issuing earlier this year to reconsider the market in the fourth quarter. The last quarter, historically, is the second busiest in terms of risk capital issued, accounting for 28 percent of issuances from 1997 through 2008.

To download this chart, right-click on the image, and select “Save Picture As”. If you have any trouble, please e-mail us.

Click here to receive e-mail updates from GC Capital Ideas >>

 

* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

AddThis Feed Button
Bookmark and Share


Related Posts