Meaning of “catastrophe bond” in the English Dictionary

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"catastrophe bond" in Business English

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catastrophe bondnoun [ C ]

uk us

FINANCE a type of investment that pays a high rate of interest unless there is a natural disaster, such as a flood, forest fire, etc. If this happens, the investment is lost and the money is used to help the people affected

(Definition of “catastrophe bond” from the Cambridge Business English Dictionary © Cambridge University Press)