What Does Catastrophe Bonds Mean?

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What does Catastrophe Bonds mean? Read on to discover the definition & meaning of the term Catastrophe Bonds - to help you better understand the language used in insurance policies.

Catastrophe Bonds

Catastrophe Bonds

Bonds issued by an insurance company with funding tied to the company's losses from disasters, or acts of God. A loss exceeding a certain size triggers a reduction in the bond value or a change in the bond structure as loss payments are paid out of bond funds.

We hope the you have a better understanding of the meaning of Catastrophe Bonds.

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