Regulatory capital has spawned more than its fair share of bond market innovations in recent years. Until now, the focus has been mainly on bank capital, but attention is shifting to the insurance sector. The team at Credit Suisse has been a leading light throughout.
A recent deal for Swiss Re, in which the bank was a joint bookrunner, suggests a future direction. In the latest of three similar transactions, the reinsurer raised $800m in pre-funded capital, which will only become regulatory capital if and when it is needed.
