First post-HIM cat bond shows higher-risk yield increase

XL Catlin is set to pay a higher coupon for a $150mn top-up to
its cat bond cover as it agreed pricing terms on a new Galileo Re
insurance-linked securities (ILS) transaction last week,
Trading Risk reported.
The deal was divided into two risk layers, including a notably
high-risk class of notes that will offer investors an insurance
coupon of 1,750 basis points (bps).
This settled at the highest end of XL's target range of
1,700-1,750 bps, Trading Risk understands....