October 3rd, 2011

Catastrophe Bond Update

Posted at 1:00 AM ET

Revisions to catastrophe models, combined with high industry losses, have led to mixed catastrophe bond issuance so far thisĀ  year. As of August 5, ten non-life catastrophe bond transactions had been completed in 2011, with new bond issuance totaling USD1.907 billion. The market remains overweight to U.S. hurricane exposure relative to the historical average. This contributed to some second quarter U.S. hurricane exposed transactions pricing at or above the upper limit of initial guidance so that they could be completed. However, as additional investor cash inflows continue to enter the sector, the market remains particularly receptive to perils other than U.S. hurricane.

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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.

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