Catastrophe Bond - CAT - A high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. It has a special condition that states that if the issuer (insurance or reinsurance company) suffers a loss from a particular predefined catastrophe, then the issuer"s obligation to pay interest and/or repay the principal is either deferred or completely forgiven.
Catastrophe Bond - CAT : a high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. it has a special condition that states that if the issuer (insurance or reinsurance company) suffers a loss from a particular predefined catastrophe, then the issuer"s obligation to pay interest and/or repay the principal is either deferred or completely forgiven.
Catastrophe Bond - CAT