July 2012/1

Bermudian start-up Mercury Capital has done its second cat bond ‘lite' deal through a $35bn US wind industry loss warranty (ILW)

Broker dealer Lane Financial estimated that average premiums in the ILS and industry loss warranty (ILW) market dropped 10 percent during the second quarter

Secondary cat bond pricing has begun levelling out after an uptick that began in early June, when high demand for bonds pushed up prices, as 2012 vintage bonds continue to price above par

An inflow of investors into the private bond market allowed broker Towers Watson Capital Markets (TWCM) to double the size of the Oak Leaf Re cat bond it placed from $11.95mn last year to $22.78mn

ILS spreads continued to slide in early July as primary cat bond issuance dried up with the onset of the US hurricane season, enabling Munich Re's latest Queen Street offering to price below forecast guidance

Two cat bond funds closed their doors to new subscriptions this month, but this is not necessarily a sign of a wider issue with excess capacity, market observers said

It was lovely to catch up with so many of our readers at the Trading Risk awards just a few weeks ago - I hope you all enjoyed yourselves as much as I did

Demand for industry loss warranty (ILW) protection has slumped, according to a variety of brokers, after indemnity protection proved to be in abundant supply at the mid-year renewals

SAC Re CEO Simon Burton says the key to the firm's successful fundraising has been repackaging its combination of (re)insurance and investment risk to appeal to investors dissatisfied with the currency on offer from traditional reinsurers