Catastrophe bonds are made available to institutional investors in the capital markets through an entity that is specially created for that purpose.This is entity is called a

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Catastrophe bonds are made available to institutional investors in the capital markets through a special purpose reinsurance vehicle, which is a type of insurance-linked securities (ILS) structure. This entity is specifically created to transfer the risk of certain catastrophic events from an insurer or reinsurer to the capital markets.

Catastrophe Bonds Are Made Available to Institutional Investors in the Capital