Cat Bonds: Making a Buck Off Disaster

The Takeaway

Wednesday on The Takeaway, Wall Street and Finance reporter for The New York Times, Louise Story mentioned the existence of something called a “cat bond.”   How do catastrophe bonds work? Essentially, these bonds are packages of insurance risks and it’s a complex market, says Louise Story. As weather events get worse and more risky, the insurance companies are wiling to pass along this risk to the investors. However, when the market get too big and the risks get too high, will we see something akin to the mortgage market bust?

Do you support journalism that strengthens our democracy?

At The World, we believe strongly that human-centered journalism is at the heart of an informed public and a strong democracy. We see democracy and journalism as two sides of the same coin. If you care about one, it is imperative to care about the other.

Every day, our nonprofit newsroom seeks to inform and empower listeners and hold the powerful accountable. Neither would be possible without the support of listeners like you. If you believe in our work, will you give today? We need your help now more than ever!