MTA saves on second cat bond

The New York Metropolitan Transportation Authority (MTA) has
achieved significant premium savings on its second cat bond, the
$125mn MetroCat Re 2017-1 issuance, according to
Trading Risk sources.
MTA captive insurer First Mutual Transportation Assurance will
pay an insurance premium of 3.7 percent for the cover, compared to
a 4.5 percent coupon on its first cat bond, which was issued in
2013.
The MTA's previous MetroCat bond provided $200mn of limit
and expired in June 2016.
The lower premium w