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Secondary trading

  • ILS spreads began their seasonal tightening relatively late into the hurricane season this year, with widening persisting into May and June.
  • Billy Welch has left Aon Securities, where he was an associate director in the Chicago office, Trading Risk understands.
  • Swiss Re Capital Markets said that the cat bond market was poised to see "mild" rate increases for the first time in a long time.
  • The average ILS expected return recovered to 3.66 percent by June 2015, from a low of 2.36 percent in September 2014, according to secondary market data compiled by Lane Financial.
  • The Swiss Re Global Cat Bond Price Return Index has experienced its largest first-half fall since H1 2011, when the market was rocked by Tohoku earthquake losses.
  • Typhoon bonds Akibare II and Aozora are on watch following predictions that Category 4 Typhoon Nangka could make landfall in southern Japan late next week, Trading Risk understands
  • Demand for high-yielding catastrophe bonds has remained strong on the secondary market, pushing up prices for such securities above par.
  • AIG has upsized its parametric cat bond Compass Re II (2015-1) by 50 percent to $300mn while pricing on the private deal narrowed to the mid-to-upper range of initial guidance, Trading Risk understands.
  • US state-specific wind bonds have been changing hands over the past month in reaction to a flurry of new issuance from Floridian insurers and state wind pools, according to US regulator Trace's Finra database
  • American International Group (AIG) has launched a $200mn private cat bond on the new electronic broking platform Rewireconnect, Trading Risk understands.
  • Insurance companies interested in issuing private placement catastrophe bonds offered under Section 4(a)(2) of the Securities Act may benefit from streamlining the structure of a bond, but they must be careful not to strip away important structural elements for capital markets risk transfer.
  • The first quarter of 2015 saw a slight hardening of rates on the ILS market, in contrast to the same period last year.