The other is a cat bond an analysis based on historiesl


Consider two bonds that have the same coupon, time to maturity, and price. One is a B-rated corporate bond. The other is a CAT bond. An analysis based on historiesl data shows that the expected losses on the two bonds in each year of their life is the same. Which bond would you advise a portfolio manager to buy and why?

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Civil Engineering: The other is a cat bond an analysis based on historiesl
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