December 2012/1

Catastrophe models were ready to handle the quirks of Hurricane Sandy, RMS said during a presentation hosted for ILS investors.

Hurricane Sandy's unique profile will test how well the PCS industry loss compilation service covers certain claim categories, as buyers of industry loss-based covers wait to see where the event will settle.

Swiss Re has redeemed two tranches of its Vita Capital IV extreme mortality cat bond worth $125mn one year ahead of maturity, Trading Risk understands.

Connecticut-based Rochdale Securities has stopped producing ILS pricing sheets in recent weeks as the firm struggles to overcome a rogue trading incident that arose in another section of the boutique brokerage firm.

Guy Carpenter has hired former Goldman Sachs trader Sung Yim to support its launch of a secondary trading desk serving the ILS market, Trading Risk can reveal.

Prices on US hurricane cat bonds have regained value on the secondary cat bond market following the post-Sandy price falls last month.

Two private bonds are circulating the market, according to sources. Scor and Aon Benfield Securities are believed to be working on an extreme mortality deal.

The latest Residential Re deal from USAA continued the trend for spread tightening in what was the first hurricane bond to be issued after Superstorm Sandy.

Swiss Re says new levels of stability in the ILS investor base could help reduce spread volatility and make pricing more predictable and stable.

Nephila is believed to have matched its $1bn+ first-half fundraising feat in the second half of the year as it heads toward the 2013 renewals.

If I was to pick out the most persistent talking points for the Trading Risk market in 2012, it would be the idea that the convergence market has not only arrived at the party, but is mingling so successfully that barriers between traditional and alternative capacity have broken down.

Industry loss warranty (ILW) capacity of $150mn-$200mn could pay out if Superstorm Sandy is deemed a $15bn insured loss event, according to sources.