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?
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Comments [1]
Anyone who spends even 5 minutes really looking at what cat bonds and the insurance linked securities market entails will know that Louise's comments are completely uninformed and off base. Another example of the poorly researched over sensationalized editorialism that passes for journalism now.
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