Tremor Launches Modern Cat Bond Issuance Platform, Tremor Issuer™
Tremor Technologies, Inc., the leading online reinsurance pricing and placing platform, has launched a modern cat bond issuance platform called Tremor Issuer™, powered by its Panorama marketplace technology. Tremor Issuer™ is an online application part of the suite of Tremor services which can be accessed online by investors, issuers, bankers and brokers.
“In the last two weeks alone, we have seen four cat bonds price 15% or more below initial guidance. While this signals more capital coming back into the market which is great to see after last year’s market challenges, it also confirms that the original guidance for these bonds was extremely poor. Could prices have been even more competitive? A traditional issuer will never know because the process is negotiated rather than powered by competitive market forces. The clearing price of a bond issued today is determined when the phone gets put down, not by economics. Tremor Issuer™ will vastly improve price discovery and allocation for the issuance of cat bonds as we work with all sides of the industry to modernize the cat bond market”, said Sean Bourgeois, Tremor’s CEO.
Tremor Issuer™ is powered by Tremor’s award winning Panorama marketplace technology. Investors bid on bonds by expressing their rich preferences for prices, quantities and important contingencies confidentially:
Our technology then compiles the entire investor market for the issuance revealing aggregate supply. The issuer gets to see the entire, most competitive version of the market for their bond powered by competitive market forces, whereby optimal price is competed for and true equilibrium is revealed vs. guessed at and negotiated:
Tremor’s Panorama platform is ideally suited for best execution for the issuance of cat bonds. The traditional issuance process takes many weeks if not months, and the negotiation process to pin down terms and allocations is laborious with suboptimal results. By contrast, the Tremor Issuer™ process takes hours and all participants can be confident that they will receive what they have requested – no guesswork required. The net result is vastly improved price and cost efficiency for the entire market.
Tremor offers Tremor Issuer™ through its new subsidiary, Tremor Capital Markets, LLC.
Insurers, reinsurers, investors, bankers and brokers interested in learning more about Tremor’s technology and how we can help are invited to reach out directly to the company by contacting Suzan Jo at sjo@tremor.co.