Monthly Archives: June 2014

News review | June 30 2014

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Munich Re's latest Queen Street X cat bond has been pulled with the reinsurer telling investors the decision was made "due to the target size not having been attained". Brought to market late in the season, the deal was priced at...

Cat bond pricing explorer

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This chart shows how the risk-adjusted spread of cat bond issuance has decreased since 2012. Note the log-log axis have warped the 'straight' lines. var divElement = document.getElementById('viz1529327059679'); ...

A brief history of cat bond prices – part two

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We take another look at how the history of cat bond prices might help to explain the current market and introduce a new interactive chart A few weeks ago we looked at how the pricing of US wind-exposed primary issues has changed...

News review | June 23 2014

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Texas Windstorm Insurance Association's (TWIA) first cat bond, has priced at the lowest end of the reduced and narrowed coupon guidance. The $400m Texas named storm Alamo Re bond was upsized from $300m following strong investor interest....

News review | July 16 2014

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Dinos Iordanou, Chairman and CEO of Arch Capital said that he expected further price declines. Speaking at an S&P conference, he said, “You create this frenzy of competition, and in my 38 years in the business, it usually doesn’t...

Are we there yet?

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Does the recent increase in cat bond yields indicate that we have reached the bottom of the market? Probably not. Last week we used industry data to plot the 12 month trailing average price of US cat bonds and found that the return...

News review | June 9 2014

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The Texas Windstorm Insurance Association, is marketing a new catastrophe bond – Alamo Re. It will use an aggregate, indemnity structure to protect the state owned wind pool. The German reinsurer, Hannover, will be fronting the transaction which...

Letters | June 8 2014

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Dirk Lohmann, Chairman and Managing Partner of Sacquaero Advisors on last week’s article on long term cat bond prices Adam, With respect to your item on cat bond spreads and the last point in your article (quoted below) I would...

A brief history of cat bond prices – part one

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We analysed twelve years of data to try to  understand the causes of the big changes in the market price of catastrophe bonds Cat bond prices are at long term lows. This seems to be for at least three reasons – the broadening acceptance...

News review | June 2 2014

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The latest iteration of USAA’s long-running Residential Re series of catastrophe bonds will include meteor strike and volcanic eruption amongst its covered perils. The $130m as Residential Reinsurance 2014 Ltd Series 2014-I bond...