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Stock impact report

World Bank Seeks to Unclog Cat Bond Jam in Emerging Markets [BNN Bloomberg (Canada)]

SWISS RE LTD S/ADR (SSREY) 
Company Research Source: BNN Bloomberg
The supranational lender has issued close to $2.6 billion of catastrophe bonds since 2014, including a $1.36 billion transaction priced in 2018 to help governments in Colombia, Chile, Mexico and Peru hedge earthquake-related losses. Nonetheless, it hasn't priced any transactions since July 2021, in part because institutional investors have allocated less cash to buy new cat bonds because they needed to use it to compensate for a slump in financial markets, said Michael Bennett, head of market solutions and structured finance at the World Bank. “We have a number of transactions in the works and some in fact have been stalled by market conditions,” Bennett said in an interview. “A good year for us might be three or four transactions” totaling $1 billion or $1.5 billion. There were around $37.8 billion of catastrophe and insurance-linked bonds outstanding as of the end of September, most of which cover risks in advanced economies, according to data compiled by Artemis. The expansi Show less Read more
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