Sandy creates livecat interest as north-east coast is hit
Hurricane Sandy stirred interest in livecat trading as the storm hit New York and the north-eastern US states, reports sister title Trading Risk, although it is not known whether any actual trading occurred.
Industry loss warranties (ILWs) - derivative contracts that trigger based on industry losses from a disaster - are being offered at premiums of around 25 percent rate-on-line (RoL) for a $10bn insured loss from Sandy, according to one senior market source.
This means, in theory, the...
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