Diversification through Catastrophe Bonds: Lessons from the Subprime Financial Crisis

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Peter Carayannopoulos; M Fabricio Perez;
  • Journal: The Geneva Papers on Risk and Insurance Issues and Practice,volume 40,issue 1 January,pages1-28
  • Subject:
    mesheuropmc: health care economics and organizations

Are catastrophe bonds (CAT bonds) zero-beta investments? Are they a valuable new source of diversification for investors? We study these questions by analysing the dynamic relations of CAT bond returns and the returns of the stock, corporate bond and government bond mar... View more
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