Reinsurer Munich Re has forecast catastrophe bond issuance to exceed $3 billion in the second quarter of 2014, driven by a high volume of renewals. In its latest insurance-linked securities (ILS) market update, Munich Re explained that it expects major issuance during the second quarter driven by the high-volume of renewals. "Maturities of $1.5 billion during the second quarter point to a strong deal pipeline during the coming months. Furthermore, Munich Re expects some sponsors with non-renewed first quarter maturities to catch up on their cat bond issuance during the second quarter," said the report. According to the update, in the first quarter of 2015, $3.5 billion of cat bonds matured, mostly from bonds issued as part of the strong activity pick-up in the ILS market in late 2011 and early 2012.