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imported>Doug Williamson |
imported>Doug Williamson |
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| A high-yield bond whose full payout is dependent on a given natural disaster <u>not</u> happening.
| | Plural of premium. |
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| This has the effect of providing insurance-like financial protection to the bond <u>issuer</u>.
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| If the particular catastrophe happens, the issuer pays less - or in the extreme case nothing at all - on the bond.
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| The investor enjoys a higher yield, in exchange for accepting the catastrophe risk effectively transferred from the issuer.
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| Also known as a Cat bond.
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| == See also == | | == See also == |
| * [[Bond]] | | * [[Float]] |
| * [[ILS]] | | * [[Premium]] |
| * [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
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| [[Category:Long_term_funding]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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Revision as of 12:15, 19 May 2015
Plural of premium.
See also