Red Cross volcano bond attracts UK state
The Natural Disaster Fund, backed by the UK government, has a first option to subscribe to a small catastrophe bond to be issued by the Danish Red Cross, which conveys volcano risk.
The deal is set to be the first cat bond covering solely volcano risk. Cat bonds involve investors receiving a coupon but risking losing their principal if a disaster breaches a trigger in the bond.The NDF has the first right to subscribe to up to $5m of the ...
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