Insurance News

Posts Tagged ‘bonds

Recent years have been tough for devotees of securitization. Woeful mortgage-backed securities have cast a pall over the practice of packaging risk into bonds and selling them to investors.

But with hurricane season in full swing, there are signs of stirring in a corner of that world: catastrophe bonds. A spate of recent storms and disasters — from Hurricane Bill to Typhoon Morakot in Taiwan — has served as a reminder of why they became Read the rest of this entry »

Last year was a watershed for many industries, and the insurance-linked securities market was no exception. ILS is a sector that has gained considerable momentum in the last decade, and was included in the same category as other, more volatile financial products. Unlike other financial products, however, catastrophe bonds?a major component of the ILS market?held their values quite well during the downturn.

Despite the influence of market Read the rest of this entry »

Aug. 17 (Bloomberg) — Catastrophe bonds, used by investors to bet against natural disasters, climbed to their highest level this year as hurricane outlooks called for a calmer season.

The Swiss Re Cat Bond Price Return Index advanced 0.3 percent to 90.56 on Aug. 14, the sixth straight weekly gain, as investors bet insurers are less likely to collect on the securities.

Insurers, including Chubb Corp. and Assurant Inc., sell the Read the rest of this entry »