We reported earlier this week that the Government of Mexico is back in the catastrophe bond market with a new World Bank facilitated IBRD CAR Mexico 2024 parametric catastrophe bond. That deal is missing one of its usual components, a Pacific hurricane tranche, but sources tell us to expect one, once any recovery from hurricane Otis is finalised.
The new $360 million IBRD CAR Mexico 2024 parametric catastrophe bond features three tranches of notes, two to cover earthquake risk and one for Atlantic hurricanes.
Typically, Mexico has sourced disaster risk insurance for both Atlantic and Pacific side hurricanes, but with a cat bond recovery still in the final stages of its determination, the Pacific tranche has been delayed and is expected to get issued separately at some stage in the future, we are told.
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