catastrophe bond

noun

A risk-linked security that transfers risk related to disasters from the issuer, typically an insurance company, to investors. Such bonds and reinsurance are backstops to insurer insolvency from unexpectedly large losses.

Similar
cat bond
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Meanings

nouncatastrophe bond (plural catastrophe bonds)

plural catastrophe bonds

  1. businessA risk-linked security that transfers risk related to disasters from the issuer, typically an insurance company, to investors. Such bonds and reinsurance are backstops to insurer insolvency from unexpectedly large losses.

    Synonyms: cat bond, CAT bond

Synonyms & antonyms

nounA risk-linked security that transfers risk related to disasters from the issuer, typically an insurance company, to investors. Such bonds and reinsurance are backstops to insurer insolvency from unexpectedly large losses.

Similar
cat bondCAT bond
Cite this entry
APA

catastrophe bond. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/catastrophe%20bond

MLA

“catastrophe bond.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/catastrophe%20bond. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “catastrophe bond,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/catastrophe%20bond.

Source: catastrophe bond on Wiktionary, CC BY-SA 4.0.