GC Securities* expects issuance to strengthen during the second half of 2011 as the RMS hurricane model change becomes more fully integrated into cedents’ risk management processes. This, along with any U.S. hurricane loss from the 2011 storm season, is likely to be a strong catalyst for issuance. Additionally, if the expected issuance increase of non-U.S. hurricane perils persists to the end of the year, investors should be better suited to take on more U.S. hurricane risk as their relative exposure to U.S. hurricane falls and demand for higher coupon transactions increases.
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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.