Thursday, December 10, 2015
"Resilience" Bonds Could Help in Climate Disaster, Rockefeller Report Says
A "resilience bond", a variation on a catastrophe bond, could help cities deal more effectively with climate change-related disasters, according to a report funded by the Rockefeller Foundation.
A traditional catastrophe bond is issued by cities or governments to protect against the losses from a pre-defined natural catastrophe. Investors lose their money if the disaster happens, leaving the city or government borrower with money to pay for clean-up costs.
But the bonds do not help to lessen the size of catastrophe-related losses. . .
Also, more on these bonds Wall Street Journal.