CAT bonds are important instruments for the insurance of catastrophe risk. Due to a low degree of deal standardization …, there is uncertainty about the determination of the CAT bond premium. In addition, it is not apparent how CAT bonds react … Katrina an increased risk perception for hurricanes can be observed. -- CAT bonds ; financial crisis ; catastrophe events …

This study investigates whether banks and insurance corporations perform regulatory arbitrage by buying bonds with … hold more bonds with inflated credit ratings. We estimate the probability of a bond having an inflated credit rating using … results show that banks and insurance corporations invest more in bonds with inflated credit ratings, while this effect is …

patterns, liquidity determinants, and the liquidity premium of catastrophe bonds. We find that cat bonds are mostly traded … dealer-buy and dealer-sell trade pairs from 229 cat bonds with exogenous default risk, we find that liquidity is high for … bonds with low default risk, bonds close to maturity, and in periods of high trading activity in the overall market. Using …

important and timely asset mix issue: the allocation to stocks vs. bonds. Investors are at a generational juncture. On this … issue, it appears the overwhelming evidence favors stocks over bonds …

This paper demonstrates that catastrophe (cat) bonds provide substantial benefits of diversification when added to an … investor's opportunity set already consisting of securities from traditional asset classes. We find that cat bonds … estimate DCC-GARCH models and find a low average correlation between cat bonds and traditional asset classes. We then conduct …

market. We show that insurance companies, the largest institutional holders of corporate bonds, reach for yield in choosing … their investments. Consistent with lower rated bonds bearing higher capital requirement, insurance firms' prefer to hold … higher rated bonds. However, conditional on credit ratings, insurance portfolios are systematically biased toward higher …

flexible death benefit to meet bequest and liquidity needs. The longevity bonds are issued through a special purpose vehicle …