ILS and cat bond investor discipline helps market stabilize
Tuesday, 08 11 2015, Category: Insurance and Reinsurance, Country: World
Investors in the insurance-linked securities (ILS) and catastrophe bond space continue to show discipline on terms and conditions (T&C), new transactional features and pricing so far in 2015, according to reinsurance giant Swiss Re.
Competition in the global reinsurance, ILS and cat bond market continues to impact primary and secondary market spreads, as investor demand for higher risk, higher yielding securities remained evident during the first-half of 2015.
Reinsurer Swiss Re notes that primary cat bond spreads appear to have stopped compressing as 2015 moves past the half-year mark, signaling that perhaps the sector might have reached a pricing floor and that investors are showing increasing market discipline.