Breaking: Allstate Confirms Default of Willow Re Cat Bonds

Time is very short. I’ll update this post with further analysis later. We’ll begin with this story via Reuters: A catastrophe bond sold by U.S. insurer Allstate Corp (ALL.N) is in default after special purpose vehicle Willow Re failed to make in full an interest payment that fell due last week. The transaction is among … Continue reading “Breaking: Allstate Confirms Default of Willow Re Cat Bonds”

No ch

McClatchy DC’s Greg Gordon has done a bang up job dissecting Goldman Sachs’ huge profits after the bailout.  This topic represents the intersection of TARP, the Wall Street investment banks and the offshore reinsurance industry. With subprime mortgages stuffed inside insurance linked securities that were peddled both domestically and overseas, the securitized reinsurance contained a derivative based financial guarantee which was … Continue reading “No ch”

News from the Cat House Part Deux: Bondage and Discipline sometimes missing from the equation

I’ve been sent several articles on the Cat Bond market of late, some very good and some not necessarily worthy of the publication in which they were printed. I’ll start with an article from The Banker Magazine which is not yet online which I read courtesy of Factiva. While the article is generally good the author, … Continue reading “News from the Cat House Part Deux: Bondage and Discipline sometimes missing from the equation”

The Commish sets up a “Stakeholder” Meeting. If he’d only invited all the stakeholders…..

I’ve been hanging onto Anita Lee’s story from June 27th (H/t Editilla for the ease in finding the link) on Insurance Commish Mike Chaney’s upcoming insurance forum for almost 2 weeks now trying to figure out how to make all the puzzle pieces fit. Puzzle pieces? Now our readers are confused too but perhaps not as … Continue reading “The Commish sets up a “Stakeholder” Meeting. If he’d only invited all the stakeholders…..”

Slabbed Daily Weekend Edition: June 6/7. Catching up on insurance news.

I finished my first radio appearance a few minutes ago and thought the show went very well. Kevin Buckel was kind enough to call in explaining his public records lawsuit against the Commish as we covered a variety of insurance related topics from appraisal to the actual cost to insure a home here in the GO … Continue reading “Slabbed Daily Weekend Edition: June 6/7. Catching up on insurance news.”

Slabbed finds Ajax’s Achilles Heel: Rock Mountain High or Just Stoned in Bermuda?

Special thanks to Chris Sposato. If memory serves there were a dirty (half) dozen “guaranteed” Cat Bond issues connected to Lehman. The second to come tumbling down belongs to Bermuda based Aspen Insurance Holdings, Ltd. and their special purpose entity Ajax Re Ltd. The associated ri$k to take a hit is covered earthquake damage in California. The story … Continue reading “Slabbed finds Ajax’s Achilles Heel: Rock Mountain High or Just Stoned in Bermuda?”

News from the cat house……

Time is short so I’ll not offer much analysis and what analysis I offer is in the form of the questions I asked myself while reading it? What money “made the market” and how and to whom are the bonds placed (ie sold)? See this lengthy post I did a week or so back to … Continue reading “News from the cat house……”

We haven’t blogged on it because we knew…..

The time is still not right for NFIP reauthorization. The bonus is this also means I get 6 more months to be a pain in the ass to our current favorite U$ $enator, true blue friend to $ubprime king Angelo Mozilo and bona fide Pac Man Chri$ Dodd. If I left anything out rest assured there will … Continue reading “We haven’t blogged on it because we knew…..”

Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?

This post begins with a bleg. Exactly how does State Farm derive $4 billion of reinsurance coverage from $1.1806 billion of actual notes outstanding? There are some very bright financial minds that are stumped by that question. So in this game of Slabbed emulates Jeopardy,  let’s set up the question and bleg at the beginning when the … Continue reading “Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?”

Anyone else curious why Allstate’s SPE WillowRe’s bonds are trading at half their par value?

Russell emailed me the answer and as is typical of what Russell digs up on complex securities and derivatives the answer is not only fascinating but begs additional questions. First let’s do a quick refresher on why this question  is topical here on Slabbed by starting with the then breaking news that Allstate’s special purpose entity Willow … Continue reading “Anyone else curious why Allstate’s SPE WillowRe’s bonds are trading at half their par value?”