Nell, Martin; Richter, Andreas - 2002 - This draft: 11/26/2002
Catastrophe bonds (cat bonds) often use index triggers, such as, for instance, parametric descriptions of a catastrophe …, this kind of coverage cannot be a perfect hedge for the primary's insured portfolio. On the other hand, cat bonds offer … risk, an important advantage of cat bonds can be seen in presumably lower risk premiums compared to (re)insurance products …