Catastrophe bonds, also known as risk-linked securities, are securitized instruments issued by insurance and reinsurance companies to transfer to the capital markets the risks associated with natural disasters and other catastrophic events.
Following are the top five holders of catastrophe bonds as reported in eMAXX as of October 15. 2002.
Institutional Investor Par Amount ($000)
Pacific Investment Management Co. (PIMCO) $148,950
Teachers Insurance & Annuity Association $120,000
Midland Advisors Company $58,455
Aon Advisors, Inc. $30,000
Metropolitan Life Insurance Company $21,310
Issuers of the most widely held catastrophe bonds include Swiss Re, SCOR and USAA. Most of these issues are rated sub-investment grade by the major rating agencies.