Sentence examples for cat bond from inspiring English sources

As Katrina bore down on New Orleans, a cat bond named Kamp Re, issued by the insurance company Zurich, was suddenly at risk.

According to Charles Melchreit, a portfolio manager of the Pioneer fund investing in them, a typical cat bond pays a coupon of 12%, nearly twice as much as the non-investment-grade sovereign debt of an emerging market like Brazil.

The resulting aggregate PCS index augmented-state variable is used to specify the payoff (principle) on the CAT bond based on reinsurance layers.

A sensitivity analysis is performed to determine the impact of uncertainty in the frequency and magnitude of hurricanes on the price of the CAT bond.

Also, while it is possible for the reinsurer to minimize their interest rate risk exposure on the fixed coupon payments, the impact of this risk on the price of the CAT bond appears small relative to the natural variability in the CAT bond price, and consequently catastrophic risk, due to uncertainty in the frequency and magnitude of landfalling hurricanes.

Therefore, the objective and unique contribution of this first installment in the two-part series is to develop a formulation and discretization strategy for the proposed CAT bond model utilizing a numerical PDE approach.

Last year a record $8 billion of cat bonds were issued.

Cat bonds are set off only by events that are specified in great detail in advance.

The market for catastrophe bonds, or cat bonds, first emerged in the 1990s, in the aftermath of Hurricane Andrew.

He had invested nearly a billion dollars of other people's money in buying what are known as "cat bonds".

Issuers of cat bonds only benefit in the event of an (inherently rare) natural disaster: that means there is little incentive for speculators to sell cat bonds as well as buy them.