Everglades Re 2014 cat bond hits $1.5 billion, prices towards upper end
Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, Everglades Re Ltd. (Series 2014-1), has grown again to hit a new record at $1.5 billion in size, a 275% upsizing from the $400m the deal was initially launched at.
Everglades Re 2014-1 is the largest catastrophe bond transaction ever issued, breaking new ground for the cat bond and ILS market and sending a clear message that ILS investors, along with an increasing number of fixed income specialists, can support the needs of even the largest reinsurance and risk transfer cedents.
Just two days ago Everglades Re 2014-1 grew to $1.25 billion while the price guidance was narrowed and moved towards the upper end. The pricing guidance for the Everglades Re 2014 cat bond started at 6.5% to 7.75%, which moved to 7.25% to 7.5% two days ago but has now settled at the upper end of that narrowed range at the 7.5% mark....MORE
