NEW YORK, Feb. 11, 2016 /PRNewswire/ -- BNY Mellon, a
global leader in investment management and investment services, 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 U.S.
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."
Over the last 10 years there have been nearly $56 billion of cat bonds issued, propelling the
outstanding volume of bonds in the ILS and cat bond market to grow
from $9 billion to nearly
$26 billion, according to Artemis.
Scott said she expects the volume to continue growing in 2016,
driven by higher demand for investment risk diversification from
investors and increased need for alternative capital sources from
sponsors.
Harold Fudali, head of BNY
Mellon's U.S. sales and relationship management for corporate and
insurance businesses in the Corporate Trust group, said cat
bonds also have become more appealing to new sponsors, such as
corporations, as their costs continue to decline due to
issuance efficiencies. He said investors are drawn to the
investment yield potential which is uncorrelated to other asset
classes.
Cat bonds are designed to transfer a specified set of insured
risks, such as natural perils, from sponsors to the capital
markets. BNY Mellon acts as a trustee, paying agent and collateral
agent to administer a wide-range of ILS transactions, including cat
bonds, sidecars, collateralized reinsurance contracts and ILS
funds.
BNY Mellon is a leading provider of corporate trust services to
the debt capital markets, offering customized and market-driven
solutions to investors, bondholders and lenders. As of Dec. 31, 2015, BNY Mellon Corporate Trust served
as trustee and/or paying agent on more than 58,000 debt-related
issues globally. The corporate trust business utilizes its global
footprint and expertise to deliver a full range of issuer and
related investor services including trustee, paying agency,
fiduciary, escrow, and other financial services. The business
administers a wide array of assets and types of programs to
multinational corporations, financial institutions, governments and
their agencies, and the banking, securities, and insurance
industries.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of Dec. 31, 2015, BNY Mellon had $28.9 trillion in assets under custody and/or
administration, and $1.6 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on
www.bnymellon.com/newsroom.
Mike
Dunn
+1 732 667
2678
mike.g.dunn@bnymellon.com
Malcolm Borthwick
+011 44 207 163 4109
malcolm.borthwick@bnymellon.com
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SOURCE BNY Mellon