The lazy days of summer

Third-quarter catastrophe bond issuance activity is usually light, and this year was no different. Only two catastrophe bonds came to market last quarter: a $225 million transaction using the PCS® Catastrophe Loss Index and the latest indemnity-triggered transaction covering risks in Japan. They brought the year’s total only to nearly $3.7 billion for the year. Because of the quiet second quarter, year-to-date catastrophe bond issuance was down more than 15 percent year over year.