Hurricane

Hurricane Sandy has stirred livecat trading interest as the storm edges its way ever closer to New York and the north-eastern states, although it is not known whether any actual trading has occurred.

Modelling agency Eqecat has estimated that Hurricane Sandy could cause $5bn-$10bn in insured losses and $10bn-$20bn in total economic damages, as storm surge levels in New York begin rising ahead of the hurricane's expected landfall in New Jersey.

The north-eastern US is on hurricane standby as Sandy heads towards the coastline, drawing comparisons with Hurricane Irene one year after that storm caused $4.3bn in insured losses

Scor and Swiss Re have taken advantage of falling ILS premiums to more than double the target size of their latest cat bond issuances, Trading Risk understands.

The downgrade of two annual aggregate tranches of outstanding Residential Re cat bond notes has been reversed by ratings agency Standard & Poor's (S&P) after losses from Hurricane Isaac and another storm fell below deductibles.

Scor's latest cat bond offering Atlas Re VII which is targeting $100mn in cover, has been given a BB- and BB preliminary rating on its class A and B notes respectively by ratings agency Standard & Poor's (S&P).

The two bonds currently being marketed to prospective investors include an innovative transaction where mortality risk is combined with property catastrophe risk in a single tranche

ILS fund managers are mostly on or above target for their 2012 returns at the nine-month mark as cat bond prices made strong gains throughout hurricane season, but their returns have widened considerably against the Swiss Re Global Cat Bond Total Return index benchmark.

Hurricane Isaac was named a credit negative event for the Combine Re cat bond by Moody's, after the storm qualified as a covered event for cedant Country Mutual Insurance Company.

2012-vintage cat bonds continued to be in high demand on the secondary market as prices reached their highest levels for the year at the start of October.

Swiss Re's renewal of the MultiCat Mexico cat bond on behalf of the Mexican government's disaster fund was met with even more demand than Eurus III, Trading Risk understands.

Swiss Re's renewal of the MultiCat Mexico cat bond has priced well below the initial guidance on the back of huge demand for the diversifying bond and its limited flexibility to upsize.