First Terror Bond Sale Opens New High-Yield Catastrophe Market
Commuter cross Westminster Bridge alongside barriers erected between the pavement and the road near Big Ben following a terror attack in London on June 5, 2017.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
A U.K. reinsurer has sold the first terror catastrophe bond, giving investors the chance to lock in high yields in return for taking on terrorism risks.
The 75 million-pound ($99 million) three-year bond will pay 5.9 percent interest, state-backed Pool Re said in a statement. The notes were issued through a special-purpose company called Baltic PCC Ltd.