Dictionary

Catastrophe Bond

From the Collaborative Bond and Money Market Data Portal

A Catastrophe Bond or Cat Bond is a bond that exposes the investor - in exchange for a higher return - to a specific insurance risk, such as the risk of a hurricane or an earthquake.

In the Collaborative Bond and Money Market Data Model a Catastrophe bond appears with the attribute "Risk – Catastrophe" in the field Category or Structure. It is part of the Category Group "Risk".

Category or Structure is a classification that is given to a Debt Instrument by a market participant. This therefore is not a legal term and so is distinct from what may be found in a Termsheet or Pricing Supplement. It is a clarification that is useful in distinguishing different types of Debt Instruments in various market segments.

 

For information on Risk - Catastrophe Bonds trades, please use CMDportal's Instrument Search tool.
For information on the size of the Risk – Catastrophe Bond Market, please use CMDportal's Data Sheet tool.
For information on the composition of the Risk – Catastrophe Bond Market, please CMDportal's Issuer Search tool.
For information on active dealers in the Risk – Catastrophe Bond Market, please use CMDportal's Dealer Search tool.