Cat bonds on the march, says broker
Reinsurance broker Guy Carpenter says a growing appetite for catastrophe bonds is coming amid “continued stabilisation” in global financial markets.
During the second quarter six bonds were issued compared to eight during the same period last year.
The company claims the market is showing signs of recovery after issued risk capital plunged 43% between the first half of 2008 and the start of this year.
Guy Carpenter Chairman of Global Client Development David Priebe says “converging factors” could attract more cat bond sponsors back into the market.
“These include a continued improvement in the broader capital markets and an increase in risk capacity,” he said.
Two catastrophe bond transactions are planned for the third quarter covering wind exposure in the US and Europe.
During the second quarter six bonds were issued compared to eight during the same period last year.
The company claims the market is showing signs of recovery after issued risk capital plunged 43% between the first half of 2008 and the start of this year.
Guy Carpenter Chairman of Global Client Development David Priebe says “converging factors” could attract more cat bond sponsors back into the market.
“These include a continued improvement in the broader capital markets and an increase in risk capacity,” he said.
Two catastrophe bond transactions are planned for the third quarter covering wind exposure in the US and Europe.