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Insurance-Linked Securities (ILS)

Index Insurance-Linked Securities (ILS)

Insurance-linked securities (ILS) are broadly defined as financial instruments whose values are driven by insurance loss events. [1]

18 relations: Asset-backed security, Bank Lombard Odier & Co, Capital market, Catastrophe bond, Collateralized debt obligation, Credit Suisse, Financial instrument, Financial market, Investor, Juniperus Capital, Law of large numbers, Legal liability, Massachusetts business trust, Natural disaster, Parametric insurance, Securities market, Securitization, Special-purpose entity.

Asset-backed security

An asset-backed security (ABS) is a security whose income payments and hence value are derived from and collateralized (or "backed") by a specified pool of underlying assets.

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Bank Lombard Odier & Co

Founded in 1796, Lombard Odier is one of the largest private banks in Switzerland and Europe.

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Capital market

A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.

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Catastrophe bond

Catastrophe bonds (also known as cat bonds) are risk-linked securities that transfer a specified set of risks from a sponsor to investors.

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Collateralized debt obligation

A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS).

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Credit Suisse

Credit Suisse Group AG is a Swiss multinational investment bank and financial services company founded and based in Switzerland.

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Financial instrument

Financial instruments are monetary contracts between parties.

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Financial market

A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs.

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Investor

An investor is a person that allocates capital with the expectation of a future financial return.

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Juniperus Capital

Juniperus Capital Limited (Juniperus Capital or JCL) is a Bermuda-based hedge fund.

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Law of large numbers

In probability theory, the law of large numbers (LLN) is a theorem that describes the result of performing the same experiment a large number of times.

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Legal liability

In law, liable means "esponsible or answerable in law; legally obligated." Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government agencies.

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Massachusetts business trust

A Massachusetts Business Trust (MBT) is a legal trust set up for the purposes of business, but not necessarily one that is operated in the Commonwealth of Massachusetts.

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Natural disaster

A natural disaster is a major adverse event resulting from natural processes of the Earth; examples include floods, hurricanes, tornadoes, volcanic eruptions, earthquakes, tsunamis, and other geologic processes.

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Parametric insurance

Parametric insurance is a type of insurance that does not indemnify the pure loss, but ex ante agrees to make a payment upon the occurrence of a triggering event.

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Securities market

Securities market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply.

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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs).

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Special-purpose entity

A special-purpose entity (SPE; or, in Europe and India, special-purpose vehicle/SPV, or, in some cases in each EU jurisdiction – FVC, financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives.

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Insurance-linked securities.

References

[1] https://en.wikipedia.org/wiki/Insurance-Linked_Securities_(ILS)

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