Insurance options: Beating the benchmark : are catastrophe bonds more profitable than corporate bonds?

Artikel

In this paper, we establish a comparison between one of the most traded financial derivatives in the markets, the so-called catastrophe bonds (abbreviated as cat bonds) and the corporate bonds. In the first section, we start from a brief definition as well as some basic concepts. In section two, we will enumerate the type of investors to whom these products might interesting and how to price them. Afterwards, in section three we move onto the analysis of the trading rule proposed, that is, the comparison with Corporate bonds, our benchmark, in terms of expected returns. In sections four and five, we will point out some key issues on how the credit risk associated to these products can be reduced and, finally, in the last section, we will conclude with some discussions and remark the stateof-the-art research on this field.

Object Details

• Alternative title: Opciones de seguros: Superando la referencia : ¿son más rentables los bonos catástrofe que los bonos corporativos?
• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Revista de Métodos Cuantitativos para la Economía y la Empresa ; ISSN: 1886-516X ; Volume: 29 ; Year: 2020 ; Pages: 3-17

Classification and Topics

• Classification: Wirtschaft ; Portfolio Choice; Investment Decisions ; Asset Pricing; Trading Volume; Bond Interest Rates ; Information and Market Efficiency; Event Studies; Insider Trading
• Subject: catastrophe bonds ; corporate bonds ; risk securitization ; risk transferring ; structured product ; insurance-linked securities ; reinsurance risk ; derivatives pricing ; credit risk

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Caro Barrera, José Rafael
• Event: Veröffentlichung
• (who): Universidad Pablo de Olavide
• (where): Sevilla
• (when): 2020

Further information

• DOI: doi:10.46661/revmetodoscuanteconempresa.2978
• Handle: http://hdl.handle.net/10419/286184
• Last update: 10.03.2025, 11:46 AM CET