Industry WIKI

Catastrophe bonds (also known as cat bonds) are a subset of insurance-linked securities (ILS) that transfer a specified set of risks from a sponsor to investors. If a specified catastrophe occurs, the bond pays the invested principal to the sponsors as a way of funding the recovery from the disaster; otherwise, the principal is returned at maturity to the investors, who are also paid a c

Structured finance is a sector of finance and financial law concerned with managing leverage and risk. Strategies may involve off-balance-sheet accounting or the use of financial instruments to manage credit risk and facilitate capital flows.