Secondary trading

The ILS market produced a total return of 10.97 percent in 2009, driven mainly by mark-to-market gains from tightening cat bond spreads, according to Aon Benfield Securities.

Secondary market traders registered an uptick in cat bond trading in November, as the US wind season drew to a close and US wind-exposed bonds came off-risk.

The secondary market price of 2009 cat bonds has shot up to an average 108-112 cents to the dollar, reflecting strong demand for the high yields in early post-Lehman issuance.

Secondary market pricing on Glacier Re's troubled Nelson Re Class G notes slumped to around 7-10 cents to the dollar after Moody's Investor Service downgraded the $67.5mn US wind-exposed G tranche in late November on news of mounting losses from Hurricane Ike.

The secondary market pricing of two cat bonds struck by the bankruptcy of total return swap (TRS) counterparty Lehman Brothers has increased by a third since mid-summer, after a rally in underlying c

Secondary trading accelerated towards the end of September, as ILS investors realigned their cat bond holdings in anticipation of $2.5bn of new issuance in the coming months. “Investors are tra

GC Securities has launched a New York-based ILS trading desk to complement its index trading activities and to boost cat bond liquidity. The desk, which gained full approval in June, will be run by

Secondary cat bond pricing has risen for the tenth consecutive week, according to Swiss Re, but Hannover Re still cited “attractive pricing” as a reason for repurchasing EUR30mn of its Me

Disappointing trading volumes in the brave new world of insurance-linked derivatives have pushed the world’s largest interdealer broker ICAP plc and insurance intermediary JLT to close their jo

The insurance-linked securities (ILS) sector produced returns of 3.89 percent for the year to end-June 2009, down from 10.12 percent the previous year, according to Aon Benfield cat bond indices. In

Bermudian mutual insurer Oil Casualty Insurance Co (OCIL) has repurchased $7,012,000 of the Class B notes of Avalon Re – its loss-stricken 2005 excess liability cat bond. The tender offer to no

Hannover Re has successfully repurchased a third of Merlin – its EUR95mn 2007 reinsurance recoverable securitisation – in the secondary market, Trading Risk can reveal. The German reinsu