<html>
<head>
<meta content="text/html; charset=windows-1252"
http-equiv="Content-Type">
</head>
<body bgcolor="#FFFFFF" text="#000000">
On 2016-05-01 22:16, Adrian Tymes wrote:<br>
<blockquote
cite="mid:CALAdGNRFWvbmnC8jW2gA9UMe5x32u=3YqshhSnVDmBFKG269gQ@mail.gmail.com"
type="cite">
<meta http-equiv="Content-Type" content="text/html;
charset=windows-1252">
<div dir="ltr">On Sun, May 1, 2016 at 10:15 AM, Anders Sandberg <span
dir="ltr"><<a moz-do-not-send="true"
href="mailto:anders@aleph.se" target="_blank">anders@aleph.se</a>></span>
wrote:<br>
<div class="gmail_extra">
<div class="gmail_quote">
<blockquote class="gmail_quote" style="margin:0 0 0
.8ex;border-left:1px #ccc solid;padding-left:1ex">
<div bgcolor="#FFFFFF" text="#000000"><span class=""> </span>cat
bonds<br>
</div>
</blockquote>
<div><br>
</div>
<div>Just to be sure: you mean financial bond instruments
dealing with catastrophes, and not feline companionship,
right? <br>
</div>
</div>
</div>
</div>
<br>
</blockquote>
<br>
Yup. Although newbies in insurance tend to snicker and have amusing
pictures on their slides when dealing with them (not to mention the
fashionable cat models). The joke gets old surprisingly fast; there
is probably some subtle reason for a high discount rate. <br>
<br>
Cat bonds are lovely when financial markets and disasters are
uncorrelated. If they get correlated, such as through a lot of cat
bonds, they lose their usefulness. <br>
<br>
<pre class="moz-signature" cols="72">--
Anders Sandberg
Future of Humanity Institute
Oxford Martin School
Oxford University</pre>
</body>
</html>