Catastrophe bond issuance may resume in fourth quarter, say experts

Waiting out the storm

Storm warning

Catastrophe (cat) bond investors and issuers around the world are facing depressed deal levels after a series of natural disasters combined with the launch of a revised risk model in the second quarter of 2011. But industry experts are anticipating issuance to revive in the fourth quarter of this year, as the need for hedging becomes a focus once more.

The cat bond markets had a good 2010. Issuance of the bonds, which transfer risks from reinsurance companies, which sponsor the deals, to investo