Eryn Bacewich
speaker
51 appearances
1 recordings
1 series
first heard Jul 2026
last heard 20 Jul
Eryn Bacewich’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jul 2026 with 1.
Appearances
Sure.
Thank you, David.
Maybe I'll start first with a quick sense of scale because it could help frame why this market matters.
So over the last couple of decades, catastrophe fee bonds have really moved from a niche structure to more of a meaningful part of the risk transfer ecosystem.
The 144A CAT bond market is sh is.
Definitely growing, has grown to about $60 billion worth of risk capital outstanding today, with about $25 billion issued in 2025.
Um, and as Laurent mentioned, um, you know, this was uh attractive, um, you know, because it was not perfectly tied to traditional reinsurance pricing cycles, which speaks to more of a structural investor base and that has been increasingly
The case.
So I guess backing up, what is a cap bond?
At its core, it's really a way to transfer insurance tail risk into the capital markets in a bond format.
So the way this works is sometimes an insurer or a reinsurer will sponsor a special purpose vehicle, typically dominated in places like Bermuda, as Laurent mentioned, or the Cayman Islands.
This SGV issues notes to investors and they hold the proceeds.
high quality collateral.
The sponsor will then pay a premium that becomes the investor's coupon, which is typically paying a floating rate.
Historically it was LIBOR LIBOR, now it's SOFAR plus a spread.
Um, so in terms of who owns them, it's primarily reinsurance and sponsors looking to uh you know lay off some of their modulable risks historically and primarily wind and earthquake.
Um, and since then, I would say so the the investor base has broadened pretty substantially.
Um, there are specialized reinsurer backed funds.
Um, that's where they are reinsurers with um in
house capital investment units.
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