Catastrophe bond and Preliminary rulings: Difference between pages

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A high-yield bond whose full payout is dependent on a given natural disaster <u>not</u> happening.  
''European Union law.''


This has the effect of providing insurance-like financial protection to the bond <u>issuer</u>. 
The process whereby a national court with a case including a question of the validity or interpretation of community law can (or if it is a final court of appeal must) refer that specific question to the European Court of Justice for a binding determination.
If the particular catastrophe happens, the issuer pays less - or in the extreme case nothing at all - on the bond.


The investor enjoys a higher yield, in exchange for accepting the catastrophe risk effectively transferred from the issuer.
Also known as a Cat bond.


== See also ==
== See also ==
* [[Bond]]
* [[European Court of Justice]]
* [[ILS]]
* [[European Union]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Latest revision as of 13:27, 17 July 2019

European Union law.

The process whereby a national court with a case including a question of the validity or interpretation of community law can (or if it is a final court of appeal must) refer that specific question to the European Court of Justice for a binding determination.


See also