Insurance Linked Securities (ILS - also known as 'cat bonds') were pioneered by Andrew Martin, Optex CEO, and Dr Morton Lane who issued the first series in the 1990s. Since then the notional outstanding in the ILS market approaches $100bn. Embedding catastrophe risks in medium term notes followed earlier options contracts on the Chicago board of Trade, which in turn had been created following reinsurance capacity shortages after hurricane Andrew in 1992
New ILS issues are predominantly exposed to worldwide catastrophe risks though other financial risks such as cyber are coming to the market.
Optex have co-managed bonds with investment banks and arranged secondary market trades.