Revisions to catastrophe models, combined with high industry losses, have led to mixed catastrophe bond issuance so far this year. As of August 5, ten non-life catastrophe bond transactions had been completed in 2011, with new bond issuance totaling USD1.907 billion. The market remains overweight to U.S. hurricane exposure relative to the historical average. This contributed to some second quarter U.S. hurricane exposed transactions pricing at or above the upper limit of initial guidance so that they could be completed. However, as additional investor cash inflows continue to enter the sector, the market remains particularly receptive to perils other than U.S. hurricane.
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