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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (18311)	9/2/2004 11:28:32 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 110194

Russ: Its been a couple of years and insurers since I read one but insurers like HIG and reinsurers like Converium have issued them. They are typically handled in private placements and I believe (not positive) the top two underwriters are Goldman and Lehman. As far as I know there is not a secondary market for them. I know the Converium one issued a couple of years ago (I think it was for $200M) gets triggered (i.e. no payment of principle) if there are two CAT's within a certain zone and time frame. Each security has different terms as to what triggers non payment (as the insurers need the funds to pay claims versus the bond) like a certail level of losses, # of CAT's or combination. I've seen rates as high as 23%.