Secondary trading

Secondary market trading has ground almost to a halt in recent weeks, as investors tried to digest a very US wind-heavy ILS issuance season.

Pricing on Avalon Re's loss-struck $135mn Class C notes almost doubled to 91 cents on the dollar on the back of last minute trading ahead of their final maturity in June.

UK regulator the Financial Services Authority (FSA) delivered a stern warning to the life settlements market about mis-selling risks to retail investors, while the American Council of Life Insurers (ACLI) has called for a ban on life settlement securitisation - raising concerns about the industry's growth and development.

The Chicago Mercantile Exchange (CME) and Insurance Futures Exchange Services (IFEX) are believed to be in talks with risk transformer vehicles to offer exchange-traded insurance derivatives in (re)insurance form.

Life settlement market pioneer The Coventry Group has formed a strategic partnership with Traymar Capital - the investment management platform of ex-RBS executives Henry Kus and Bjorn Schmolk.

Goldman Sachs is offering up to $200mn of its holding in Unum Group's $800mn Northwind embedded value life securitisation for sale in the secondary market at an approximate 20 percent discount to par.

The Financial Services Authority (FSA) has voiced "significant concerns" about how life settlements products are sold to retail investors saying that the investment risk to consumers is "often downplayed", according to Peter Smith, head of investment in the UK regulator's policy department.

US broker-dealer Cantor Fitzgerald is set to be the latest firm to launch a secondary ILS trading desk, Trading Risk can reveal.

Cat bond holders noted strong price increases in January, with an increasing number realising gains by selling at above market price, according to sources.

US investment bank JP Morgan is willing to contribute its LifeMetrics parametric longevity index to the Life and Longevity Markets Association (LLMA) in order to focus the market's efforts on a single listing, Trading Risk can reveal.

US broker-dealer Cantor Fitzgerald is set to be the latest firm to launch a secondary ILS trading desk, Trading Risk can reveal.

Dedicated insurance-linked derivatives broker Myrias LLC has ceased to trade, closing its screen-based trading platform with effect from 22 January, Trading Risk can reveal.