Listing makes CEA catastrophe bond the first to be tradable

Wednesday, 10. October 2012

Oct 10 A private catastrophe bond has been listed on the Channel Islands Stock Exchange, the first time such a deal has been made fully tradable in the secondary market.

The California Earthquake Authority (CEA) and reinsurance firm Solidum Partners set up a special purpose vehicle (SPV) in Guernsey to issue cat bond notes through a transformer reinsurance contract.

The SPV - called Solidum Re Eiger IC Limited - provides $52 million of earthquake protection for the CEA in the state via a privately placed catastrophe bond...

Reuters Article