Listen to this video on You tube and answer the following questions: https://www.youtube.com/watch?v=ehZzU8hWv-4&feature=emb_title 

1. Catastrophe bonds are an example of which of the following? Select one: 

a. Coinsurance 

b. Reinsurance 

c. Securitization of insurance 

d. Moral hazard in the insurance market 

2. Why would investors want to invest in CATs? Select one: 

a. Because the returns on these bonds are not correlated with the economy 

b. Because central banks have held interest rates very low for a long time 

c. Because institutions like pension funds need to earn higher interest rates to meet their obligations 

d. For diversification and the "search for yield" 

e .All of the above

Answer rating: 100% (QA)

1 The answer is C Securitization of insurance Explanation Catastrophe bonds also called cat b... View the full answer