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Secondary trading

  • The sustained seller's market in secondary cat bonds experienced in the first quarter has subsided after new issuance flooded into the market, but investor appetite remains strong, ILS traders have indicated.
  • ILS funds tracked by the Eurekahedge ILS Advisers Index posted an average return of 0.83 percent in April
  • Former Rochdale Securities ILS trader Craig Bonder has moved with his team from Maxim to AK Capital to set up the firm's first ILS trading desk.
  • A busy period for primary issuance and buoyant demand for cat bonds has fuelled a very active secondary market over the past month, but pricing has finally started to ease back from sustained highs earlier in the year.
  • Tokio Millennium Re recouped $20.5mn from industry loss warranties (ILWs) traded as livecat contracts during Superstorm Sandy, the company disclosed in its 2012 annual report
  • Strong demand in the secondary cat bond market is resulting in "pre-sell" bids being placed on new notes above par value before the deals have even closed, according to sources
  • The strength of investor interest in the (re)insurance sector is expected to keep spreads tight as ILS prices remained strong on the secondary market throughout March
  • Buying demand on the secondary ILS market remains strong but there have been few trading opportunities in recent weeks as cash-flush investors await new issuance opportunities
  • Strong demand for bonds on the secondary market has outpaced supply after lower-than-expected new issuance in the fourth quarter and first weeks of January
  • Former Aon Benfield Securities executives Andy Beecroft and Paul Rayner have officially joined the new M&A team at GC Securities, in a move first revealed by sister publication The Insurance Insider in August last year.
  • 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.