Catastrophe Call
Contents
Decoding Catastrophe Calls in Municipal Bonds: An Essential Guide
Explore the intricacies of catastrophe calls in municipal bonds, unraveling their significance in mitigating risks associated with natural disasters and project failures. Delve into real-world examples and key takeaways to understand how catastrophe call provisions impact investors and issuers alike.
Unveiling Catastrophe Calls
Discover the role of catastrophe calls as a safeguard against unforeseen calamities, allowing issuers to redeem bonds early in the event of project damage. Learn how these provisions differ from other forms of bond redemption and their implications for investors and municipalities.
Understanding Risk and Yield
Gain insight into the relationship between catastrophe call provisions and bond yields, exploring how higher risk loads influence investment returns. Explore the nuances of revenue bonds versus general obligation bonds and their respective susceptibility to catastrophe calls.