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.
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.