NEW YORK–Catastrophe bond market activity is set to fall from a lofty peak of $4 billion in issuances in 2006, but the market will remain strong in 2008 and move in different directions, experts said here.

During the opening session of the “Standard & Poor’s Insurance-Linked Securities Conference” last week, Rodney Clark, managing director of S&P’s Financial Institutions group, noted that the level of issuance for bonds linked to natural catastrophes jumped to over $4 billion in 2006 from just over $1.5 billion in 2005–with the U.S. hurricane events of 2005 driving the boost in activity.

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