January 2011/1

Mother Nature once again reminded us of her power at the dawn of 2011, with tornadoes and hailstorms across the US Midwest states almost attempting to batter the new year back from whence it came.

All major cat bond managers predict a re-run of $5bn+ cat bond issuance for the coming year, even in the absence of heavy cat losses, Trading Risk research shows.

Swiss Re's Kamp Re cat bond, which was struck with losses from Hurricane Katrina weeks after launch in 2005, has finally matured and returned around $46mn of its $190mn principal to investors, Trading Risk can reveal.