Secondary cat bond trading stalls in softer 2021 market
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Secondary cat bond trading stalls in softer 2021 market

Financial market design concept

Volumes of secondary cat bond trading have dropped significantly in the first part of 2021, according to sources in the ILS industry who said high excess demand was driving a buy-and-hold mentality.

Many declined to estimate how much slower trading was, although one source estimated volumes could be down by as much as half.

But

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