catastrophe bond

/kə'tæstrəfi bɒnd/ noun
a bond with very high interest rate but, which may be worth less, or give a lower rate of interest, if a disaster such as an earthquake occurs

Dictionary of banking and finance. 2015.

Look at other dictionaries:

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  • 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)… …   Investment dictionary

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  • Catastrophe Call — A call provision in municipal bonds that allows for the early redemption of the instrument if a catastrophic event occurs and severely damages the project financed by the issue. Possible catastrophes will be listed in the bond s indenture and are …   Investment dictionary

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