Secondary trading

The value of annual cat bond trading on the secondary market has more than doubled in the past four years, from $1.7bn in 2010 to $4.2bn last year, fund manager Elementum Advisors estimated.

The secondary cat bond market has cleared more than $3mn of trades over the previous week, according to data collected by US regulator Finra's Trace reporting system.

High-yielding cat bonds have made up two-thirds of the trades on the secondary market in the first six weeks of 2015, according to information recorded by Finra's Trace system.

American Strategic's cat bond Gator Re has recovered value in the New Year after the bond's annual aggregate loss tally reset.

Cat bond traders said that activity on the secondary market was subdued in January, as there was less cash overhang than had been expected amid a large number of maturities.

Gator Re has recovered value in the New Year after the bond's annual aggregate loss tally reset, Trading Risk understands.

The Gator Re cat bond has traded as low as 79 cents on the dollar after sponsor American Strategic Insurance (ASI) reported a deterioration to its loss reserves for 2014.

The Swiss Re Cat Bond Global Price Return Index took its biggest fall of 2014 in November.

Prices on American Strategic's Gator Re cat bond dropped by roughly 10 percent in the week following the sponsor's updated loss report, but sources said a wide variation on indicative pricing remains.

The volumes of US-linked industry loss warranties (ILWs) traded in the first half of 2014 came to about $800mn as suppliers broadened the terms of their cover, according to estimates from Aon's Global Re Specialty unit

Cat bond prices remained 1.16 percent below the peak recorded for 2014 by the end of August, after beginning their seasonal climb in mid-July

The regulator for securities firms operating in the US has begun to publish data on catastrophe bonds traded by its members in an attempt to make the Rule 144A bond market more transparent