We asked our insurance-linked securities (ILS) focused readers for their thoughts as to how large the Hurricane Ian mark-to-market implied loss to catastrophe bonds could be, when pricing sheets were marked on Friday.
The resounding answer was that “more than $1 billion” of mark-downs in value were expected across the catastrophe bond market, while a number of sources we’ve spoken directly with suggested it could be as high as between $2 billion and $3.5 billion.
Of course, the marking of cat bond prices can always be subject to reversal or reduction, with positions often initially being marked-down far more than the eventual losses of cat bond investor principal turn out to be.
FULL ORIGINAL PUBLICATION HERE
