The risk capital outstanding in the catastrophe-bond market rose to $15 billion in the first quarter, and bond issuance this year is likely to surpass the annual record of $7 billion, according to a GC Securities report. The investor base for the bonds is widening, which "can only be a good thing for the market's long-term prospects as it increases available capacity without leaving the market susceptible to reckless capital that will support transactions with ill-considered terms," the report says.

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