Following ongoing analysis on the CAT bond markets in terms of who’s likely to be effected by Irma, Stephen Ross, director, capital from RMS expects to see some “very close calls, if we don’t see some defaults”. 

”Florida plays a significant part in the CAT bond market as well as the broader collateralized reinsurance space,” so I would expctt here to be some very close calls, if we don’t see some defaults.”

Moss added:”I would be amazed if this time next week, we don’t have some good indication as to which of these bonds are likely to default and who’s likely to need to gain recoveries from them.

CAT bonds exposed to the recent earthquake in Mexico were also raised: ”The earthquake in Mexico does look like it’s impacted one of the bonds that was recently issued in Mexico – the Fonden transaction which was issued to the World Bank.

”There are other CAT bonds exposed to the Mexican earthquake but none of them - materially enough that I can see - that will demonstrate a loss to any other transactions.”