November 24, 2008

By: Morton N. Lane

News about the quality of collateral behind certain ILS notes has now broken into public view with the revelation by the Insurance Insider (Nov. 14) that Ajax’s collateral account contained Ballantyne Re tranches. Price action in the secondary markets has suggested problems with collateral for some time, but the subject (if not the detail) is now in plain sight. It is another blow to the insurance linked securities (ILS) market.

To read the full version of this article with graphs:

Download the PDF Here