Keywords
alternative hedging of catastrophic risk
emerging economies
The World Bank
How to Cite
Abstract
Catastrophe bonds are an alternative financial solution to traditional catastrophe risk hedging mechanisms. For this reason, the World Bank has developed a program for issuing these financial instruments (MultiCat Program) whose objective is to help emerging economies to efficiently insure these risks and allow investors to obtain high returns uncorrelated with traditional financial assets. This article provides a description of these products designed by the World Bank and develops the main characteristics of some of the most important Cat bond transactions carried out by the World Bank to date.
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