Haerdle, Wolfgang; Cabrera, Brenda Lopez - 2007
occurrence of a naturaldisaster, the reconstruction can be financed with catastrophe bonds(CAT bonds) or reinsurance. This paper … sidesof the contract, the reinsurance and the capital markets, and from the historicaldata. The results demonstrate that …, under specific conditions, thefinancial strategy of the government, a mix of reinsurance and CAT bond, isoptimal in the …