Catastrophe bonds or cat bonds

Articles & news covering catastrophe bonds or cat bonds. These insurance linked securities are focused on catastrophic risks, largely property catastrophe reinsurance, and allow cedents to package catastrophe risks into a securitized bond format to be sold to investors.

Investors appreciate catastrophe bonds because the security has some liquidity and a secondary market exists. Also there is significant transparency required in a catastrophe bond transaction which helps investors to become more comfortable with the risk they are investing in.