Market Participants
Examples of cat bond sponsors include insurers, reinsurers, corporations, and government agencies. Over time, frequent issuers have included USAA, Swiss Re, Munich Re, Liberty Mutual, Hannover Re, Allianz, and Tokio Marine Nichido. Mexico is the only national sovereign to have issued cat bonds (in 2006, for hedging earthquake risk and in 2009, a multistructure instrument that covered earthquake and hurricane risk).
To date, all direct catastrophe bond investors have been institutional investors, since all broadly distributed transactions have been distributed in that form. These have included specialized catastrophe bond funds, hedge funds, investment advisors (money managers), life insurers, reinsurers, pension funds, and others. Individual investors have generally purchased such securities through specialized funds.
Investment banks and Inter Dealer Brokers that are active in the trading and issuance of catastrophe bonds include Aon Benfield Securities, Inc., BNP Paribas, Tullett Prebon, Swiss Re Capital Markets, GC Securities (a division of MMC Securities Corp. and affiliate of Guy Carpenter), Goldman Sachs, Munich Re Capital Markets, Barclays Capital, Deutsche Bank, JP Morgan, and Willis Capital Markets. Some of them also make secondary markets in these bonds.
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