Breaking: Allstate Confirms Default of Willow Re Cat Bonds

Time is very short. I’ll update this post with further analysis later. We’ll begin with this story via Reuters: A catastrophe bond sold by U.S. insurer Allstate Corp (ALL.N) is in default after special purpose vehicle Willow Re failed to make in full an interest payment that fell due last week. The transaction is among … Continue reading “Breaking: Allstate Confirms Default of Willow Re Cat Bonds”

Anyone else curious why Allstate’s SPE WillowRe’s bonds are trading at half their par value?

Russell emailed me the answer and as is typical of what Russell digs up on complex securities and derivatives the answer is not only fascinating but begs additional questions. First let’s do a quick refresher on why this question  is topical here on Slabbed by starting with the then breaking news that Allstate’s special purpose entity Willow … Continue reading “Anyone else curious why Allstate’s SPE WillowRe’s bonds are trading at half their par value?”

Slabbed Lets the Cat out of the Bag: Is Allstate’s Reinsurance Program Worthless? Ask the Weeping Willow tREe.

Cat bonds that is and certainly they have been topical this week here on slabbed. Let’s begin by taking a trip back in time to the Bloomberg story we linked on Willow Re, an Allstate SPE (special purpose entity) earlier this week: The issuer has notified Standard & Poor’s that it will not have sufficient … Continue reading “Slabbed Lets the Cat out of the Bag: Is Allstate’s Reinsurance Program Worthless? Ask the Weeping Willow tREe.”

Matt at Fix the Pumps finds woody debris in the new levees and a Fred Heebe in the woodpile.

Folks there are few more dedicated niche bloggers in Metro NOLA than Matt McBride over at Fix the Pumps.  Matt is a tireless advocate for properly constructed flood protection for New Orleans metro and in a 3 part series details the problems the Army Corps of Engineers is having with contractors delivering dirt for levee construction … Continue reading “Matt at Fix the Pumps finds woody debris in the new levees and a Fred Heebe in the woodpile.”

Ut-oh, Judge Ginger “plans to visit River Birch lanfill office to resolve records dispute” (update: links reset)

Were the SLABBED-nation to elect a homecoming queen, I’m certain it wouldn’t be federal district judge Helen “Ginger” Berrigan – and, after reviewing her background, I’m equally certain she wouldn’t care. … Judge Berrigan is the author of Louisiana Criminal Trial Practice…Prior to her appointment as a federal judge, she was a criminal defense attorney. … Continue reading “Ut-oh, Judge Ginger “plans to visit River Birch lanfill office to resolve records dispute” (update: links reset)”

Behavioral Finance 101: Expectations, Reality and the Total Return Swap.

Russell sent me this from the Wall Street Journal and it is quite good. The concept is fairly simple as Jason Zweig illustrates: David Salem is president of the Investment Fund for Foundations, which manages $8 billion for more than 700 nonprofits. Mr. Salem periodically asks trustees and investment officers of these charities to imagine they can … Continue reading “Behavioral Finance 101: Expectations, Reality and the Total Return Swap.”

Jim Brown Reviews Sarah Palin

Thursday, December 3, 2009 Baton Rouge, Louisiana SARAH PALIN WOULD FIT IN WELL IN LOUISIANA! Did you actually read Sarah Palin’s new book, Going Rouge? Sure it’s a national best seller. I had no plans to buy it. Nothing against Sarah. I really liked the Newsweek cover with Sarah in her jogging shorts. (She’s running-probably … Continue reading “Jim Brown Reviews Sarah Palin”

The Tangled Web Part Deux: Support your local TARP insurer and/or subsidize “the wealthy”

I love it when I hear that mental “click”! I’ve been squirreling away several important news links like pieces of a jig saw puzzle trying to figure out how to make them fit and be understandable to a broader audience. This post is partially in response to the recent guest column by Eli Lehrer of the … Continue reading “The Tangled Web Part Deux: Support your local TARP insurer and/or subsidize “the wealthy””

SLABBED Daily – April 3, 2009 (Insurer bankruptcy edition)

Here are some of the insurance/finance stories I’m tracking this morning: From the Wall Street Journal we find Credit Suisse analyst Thomas Gallagher opinied the Hartford may need to post collateral on about $400 million of credit-default swaps it has written if it suffers further downgrades to its ratings. Moody’s downgraded the Hartford to one notch above … Continue reading “SLABBED Daily – April 3, 2009 (Insurer bankruptcy edition)”

Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?

This post begins with a bleg. Exactly how does State Farm derive $4 billion of reinsurance coverage from $1.1806 billion of actual notes outstanding? There are some very bright financial minds that are stumped by that question. So in this game of Slabbed emulates Jeopardy,  let’s set up the question and bleg at the beginning when the … Continue reading “Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?”