Bloomberg News reports that the bank initially planned to sell as much as $636m of the notes, three people familiar with the deal said when it was first marketed. Order taking was extended earlier this month, people with knowledge of the deal said, and insurance blog Artemis reported on May 17 the offer was being cut to about $201.9m.
“We did look at the risk bond for some time and considered investing -- it’s definitely an interesting idea ” said Dirk Schmelzer, a money manager at Plenum Investments, an investment firm specializing in insurance-linked securities. “It would have been difficult to explain to our clients why we’d invest in such an instrument as the risks are hard to assess and difficult to remodel.”
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