Issuance of catastrophe bonds in the first three quarters amounted to $2.28 billion, a 23.5% decrease from the same period in 2010, according to a Willis report. The decline "can be largely attributable" to losses from disasters in the first half of the year as well as changes to catastrophe models, Willis said. In the third quarter, however, bond issuance jumped 40.8% to $676 million, compared with $480 million in the same period last year, although bond issuance is normally lighter during the third quarter "as the market waits out the hurricane season," Willis said.

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