One man’s catastrophe is another’s fortune

CATASTROPHE BONDS

Two new issues in as many weeks ranks as a flurry of activity in the usually slow-moving world of catastrophe bond securitization. But does it herald a boom in deal flow?

As Euromoney pointed out in January, the new-issue climate for cat bonds – which aim to offer an alternative to the traditional reinsurance of catastrophe risk and a new source of capacity to the insurance industry by repackaging risk and selling securities to capital market investors – could hardly be better.

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