Economy Blog

Lots of people have been talking about the collapse of the auction-rate securities market, but related troubles in the catastrophe reinsurance market have gone largely overlooked. With credit markets gone AWOL, you won’t be entirely surprised to hear that finding buyers for catastrophe-related bonds has become increasingly tough, at least at non-usurious yields. It is a bigger subject, and I will return to it in future, but here is the latest revelation: Government is thinking of back-stopping the cat-re market by being the insurance provider of last resort. Lovely. …
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