-
Pure cat bond funds continued to outperform private ILS strategies on the ILS Advisers index. -
Spreads are being offered to investors at the higher end of the initial range.
-
The new issuance is thought to be the municipal utility’s first foray into the cat bond market
-
Spreads on two of the three tranches fell below the range first offered to investors
-
Covid-19 may have been the biggest talking point in the (re)insurance markets this year but arguably, the pandemic is being overtaken by several other factors – ILS market dynamics amongst them.
-
Pricing on the deal's lower-risk layers has dropped below USAA's original target, falling 50 basis points.
-
This is the first time the insurer has used the cat bond market since its Mariah Re cat bonds paid out after the record tornado season of 2011.
-
The final limit raised was nearly 60% above the company’s initial target, as pricing dropped to the lower end of forecasts.
-
New law would end the country’s long-term cat bond programme and cast doubt on the fund’s on-risk cat bond.
-
The transaction takes total cat bond lite volumes to more than $270mn this year.
-
Greater investor demand is being supported by a focus on liquidity and defined perils – but sources caution against over-hyping the shift.
-
Sources said the deal remained enticing despite spreads dropping
