BNY Mellon has been ranked as the leading global trustee for catastrophe bonds, commonly referred to as “cat bonds,” issued in 2015. BNY Mellon’s market share rose to 52 percent by dollar volume, up from 36 percent in 2014, according to research compiled internally using data from Artemis, a leading provider of information on the insurance-linked securities (ILS) and cat bond market.
For 2015, BNY Mellon acted as trustee for 52 percent of the $7.8 billion in cat bonds issued globally, which are financial instruments that provide reinsurance capacity for catastrophic events such as earthquakes, wind damage and floods.
“Our growing volume and market share spotlights the benefits clients are receiving from our continuing service improvements and strategic commitment to this market,” said Kathleen Scott, head of BNY Mellon’s US corporate and insurance business in the Corporate Trust group. “We have the capabilities and expertise to support new entrants to the cat bond market. New sponsors include corporations that are joining traditional insurance and reinsurance companies that see cat bonds as an increasingly attractive way to hedge against risk.”