Bond (Catastrophe)

What is Bond (Catastrophe)?

Bond (Catastrophe) is Catastrophe bonds are securitised risk financing promissory notes or IOUs issued by a corporation as evidence of a future potential debt based on receivables out of catastrophe insurance. Catastrophe bonds are linked to a specified event (catastrophe, natural disasters or specified perils) and triggered according to the occurrence of the event within the period of the bond.

 

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