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Cat bond issuance surges in Q2: Guy Carp

09 August 2010

Eight catastrophe bond transactions totalling $2bn in risk capital were completed in the second quarter of 2010, making it the second most active second quarter on record, according to a new report by Guy Carpenter.

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Eight catastrophe bond transactions totalling $2bn in risk capital were completed in  the second quarter of 2010, making it the second most active second quarter on record, according to a new report by Guy Carpenter & Company and GC Securities,  a division of MMC Securities.

The report, Cat Bond Market Update: Second Quarter 2010, found continued strong investor demand for new issuance, with conditions for sponsors remaining favourable. 

Despite substantial new issuance, total risk capital outstanding in the catastrophe bond market
at the mid-point of 2010 declined by 0.8% relative to the end of the first quarter of 2010 and by 5.5% relative to year-end 2009.

Although the majority of second quarter issuance included exposure to US wind, leading into what is expected to be an active North Atlantic hurricane season,...


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For more catastrophe reports, data and news, click through to the RMS/Reactions Catastrophe Centre.

Poll

Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
44%
$4bn-$5bn
22%
$5bn-$6bn
11%
$6bn-$7bn
22%
More than $7bn
0%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield