Secondary trading

The secondary ILS market cleared a new record-sized trade of the $1.5bn Everglades 2014-1 cat bond in March, sources told Trading Risk.

Several cat bonds have been trading on the secondary market over the past week, led by AIG's Tradewynd Re (2014-1) class 1B notes, according to the Trace system of US regulator Finra.

The Alamo Re issuance from the Texas Windstorm Insurance Association (TWIA) has been one of the most actively traded bonds on the secondary market in recent weeks, making up over a third of trades recorded on US regulator Finra's Trace system since mid-February.

Catlin's new Galileo Re bond is already trading above par on the secondary market just weeks after its issuance.

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.

Kane's segregated accounts company has issued a $50.2mn private cat bond, according to a listings announcement on the Bermuda Stock Exchange (BSX).

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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.

Kane SAC has enhanced its private cat bond platform with an electronic trading system to facilitate the secondary trading of cat bonds issued on the platform.

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.