FINANCEatypeofinvestmentthatpaysa highrateofinterestunlessthere is anaturaldisaster, such as aflood,forestfire, etc. If thishappens, theinvestmentislostand themoneyis used tohelpthepeopleaffected(Definition ofcatastrophe bondfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofcatastrophe bond
catastrophe bondTo date, all directcatastrophebondinvestors have been institutional investors, since all broadly distributed transactions have been distributed in that form.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Acatastrophebondis rated based on its probability of default due to a qualifying catastrophe triggering loss of principal.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.By year end 2006, it began to appear as though supply and demand in the reinsurance andcatastrophebond markets had achieved balance at the prevailing price level.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Catastrophe bonds are typically used by insurers as an alternative to traditional catastrophe reinsurance.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These were the first true sidecars, and were a natural outgrowth of the development of re/insurance as an asset class in the form of catastrophe bonds.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/catastrophe-bond##
