4 April 2014

ILS yields continue to reflect investor appetite

Investor yields on this year’s cat bonds “typically settled at the low end of the price guidance”, according to the latest report issued by ILS Advisers.

Pricing reflects continued strong interest in the space, as hedge fund investors join pension funds in their pursuit of catastrophe reinsurance risk.

A number of significant ILS transactions came to market during the first quarter of 2014, including a $100 million bond from Munich Re; a return to the market by Tokio Marine through a $245 million bond placement and a debut $200 million bond issued by American Strategic, ILS Advisers reports.

Issuers are looking to take advantage of attractive pricing and strong investor appetite, which is particularly marked when diversifying perils are brought to market.