Catastrophe bond and Claimant company: 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.
In the context of UK group tax relief, the company which obtains the benefit of the relief from another group company (the surrendering company) under group relief provisions.
 
This has the effect of providing insurance-like financial protection to the bond <u>issuer</u>. 
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]]
* [[Group relief]]
* [[ILS]]


[[Category:Debt_Capital_Markets]]
[[Category:Business_and_Operational_Risk]]

Revision as of 14:17, 23 October 2012

In the context of UK group tax relief, the company which obtains the benefit of the relief from another group company (the surrendering company) under group relief provisions.

See also