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Cat bond or catastrophe bond or hurricane bond
Designates a bond which principal and interest, in all or in part, is no longer due if a specified insured loss materialises, such as claims in relation to a tempest or earthquake coming to exceed a specified threshold (hence the qualificative of "catastrophic"). "Hurricane bonds" are a type of cat bond hedging against hurricane-related catastrophes.
Cat bond or catastrophe bond or hurricane bond
Designates a bond which principal and interest, in all or in part, is no longer due if a specified insured loss materialises, such as claims in relation to a tempest or earthquake coming to exceed a specified threshold (hence the qualificative of "catastrophic"). "Hurricane bonds" are a type of cat bond hedging against hurricane-related catastrophes.
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