Secondary trading

Imminent changes to Risk Management Solutions' (RMS) US hurricane risk model are predicted to create volatility in secondary ILS trading, with expected loss figures on outstanding bonds set to rise significantly, Trading Risk understands.

$20mn of notes in three new cat bonds traded shortly after launch, as investors scrambled to acquire sought-after diversifying risk, Trading Risk can reveal.

A healthy market in private (A)XXX US life reserve securitisations should emerge into the public limelight next year as the life securitisation market continues to recover, Swiss Re says.

A large portion of cat fund Solidum's $4.25mn private cat bond notes traded in the secondary market earlier this month, Trading Risk can reveal.

A true marker of liquidity in the secondary market has been set with a EUR2mn secondary market trade in Scor's latest Atlas VI notes, just four minutes after the deal closed.

First time issuer American Family's $100mn Mariah Re US thunderstorm cat bond is trading at 101.5 cents to the dollar just weeks after its November launch, according to sources.

Cat bond prices in the secondary market have fallen in recent weeks, according to Swiss Re data, resulting in mark-to-market losses on investor portfolios.

Buyers of industry loss warranty (ILW) instruments are seeking more risky exposure to European wind to provide balance to the low-risk new ILS issuance that has hit the market in recent months.

Outstanding European wind bonds are becoming increasingly sought after on the secondary market, sources say, after investors snapped up recent new issues.

Swiss ILS manager Solidum Partners' $4.25mn private cat bond transaction listed on the secondary market in October, offering investors a short-dated bond with the promise of capital gain at maturity.

Bonds with short periods to run until maturity are trading strongly on the secondary market as investors seek cashflow from un-exposed paper, according to brokers.

Reinsurance broker Willis and New York based Phoenix Capital are set to be the next firms to launch secondary ILS trading desks.