LONDON, (Reuters)—Catastrophe bond issuance could double over the final three months of 2011, fueled by strong demand from investors seeking a haven from wild price swings in mainstream financial markets, brokerage GC Securities said on Tuesday.
A total of $2.12 billion of bonds were sold in the nine months to Sept. 30, but this could rise to as much as $4.5 billion by year's end thanks to robust investor demand as the Eurozone sovereign debt crisis weighs on stock and bond markets, said GC, part of insurance brokerage Marsh.
“Continued volatility in the broader financial markets and comparatively attractive returns are driving net new inflows to the sector,” said Chi Hum, global head of Distribution at GC Securities.
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