A risky investment instrument that offers a high rate of return by hedging against the likelihood of a catastrophe. Reinsurance companies limit their risk by sharing it with purchasers of the bonds. In the event of disaster, 100% of the principle is typically used up to pay off insurance claims and the bond becomes worthless.
Related information about event-linked bond:
- Event-Linked Bond Definition | Investopedia
A type of bond whose interest and principal payments are determined based on the non-occurrence of certain events, such as earthquakes and hurricanes, ...
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It's known as the "event-linked bond". In this article, we'll take a look at event- linked bonds, and show how and why they are used. (To get some background on ...
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Definition of event-linked bond: A risky investment instrument that offers a high rate of return by hedging against the likelihood of a catastrophe. Reinsurance ...
- Catastrophe Bonds and Other Event-Linked Securities - finra
Apr 24, 2008... expertise in probability modeling, weather forecasting, seismology and other technical factors to evaluate the value of an event-linked bond.
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10, Opp. Cmmdty Strtgy Tot. Return, 2.0. 11, Opp. Rising Dividends Fund, Cl. Y, 2.0. 12, Opp. Mstr Infltn Prtctd Sec. 1.6. 13, Opp. Master Event-Linked Bond Fund ...
- Global Multi Strategies Fund Fact Sheet - OppenheimerFunds
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May 29, 2007 ... Event-Linked Bond Risk. For some event-linked bonds, the trigger event or magnitude of losses may be based on company-wide losses, index- ...
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To date, no event-linked bond has suffered an actual loss of principal. Additional reserve layer attained by selling event-linked bonds in the capital markets ...