Catastrophe bond issuance activityis not expected to revisit 2007's record-breaking levels, but thefirm estimates that 2009 is on track to be the third-busiest yearfor cat bonds, according to a briefing by Guy Carpenter & Co.LLC. Three bonds were closed in the first quarter of 2009, equaling2008's first-quarter activity, the report stated. And while it isstill too early to predict whether the economy will affect thecatastrophe bond market, the 2009 first-quarter resurgence is apositive sign. Those three bonds resulted in $575 million incapital. The number of transactions equaled 2008's first quarter.For all of 2009, Guy Carpenter reports that the consensus estimatefor issuance activity is $3 billion, conditional on marketconditions. If that estimate is reached, that would result in 11.1percent year-over-year increase in bond capital outstanding.
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