Cat bond surge forecast for year-end

The market is expected to total between $3-$4bn for 2009, although bonds for half of this figure have yet to be issued

US hurricane exposure accounted for just under half of the catastrophe bonds issued in the third quarter, according to a new report by reinsurance broker Guy Carpenter. Meanwhile, the cat bond market is poised for an active fourth quarter in 2009, the broker says, although year-to-date activity is one-third down on the same period in 2008.