Catastrophe bonds and systemic risk

dc.contributor.author	Bostandzic, Denefa
dc.contributor.author	Irresberger, Felix
dc.contributor.author	Weiß, Gregor N.F.
dc.date.accessioned	2013-08-27T13:22:09Z
dc.date.available	2013-08-27T13:22:09Z
dc.date.issued	2013-08-27
dc.description.abstract	Do catastrophe bonds increase or decrease the exposure and contribution to systemic risk of issuing insurance companies? And if such issues influence systemic stability, what design features of the bond and characteristics of issuing insurer cause catastrophe bond issues to destabilize the financial sector? Contrary to current conjectures of insurance regulators, we find that the contribution of ceding insurers to systemic risk actually decreases significantly after the issue of a catastrophe bond. We empirically confirm that a higher pre-issue leverage, a higher firm valuation and previous cat bond issues all exert a decreasing effect on the issuer’s systemic risk contribution.	en
dc.identifier.uri	http://hdl.handle.net/2003/30558
dc.identifier.uri	http://dx.doi.org/10.17877/DE290R-10757
dc.language.iso	en	de
dc.relation.ispartofseries	Discussion Paper / SFB 823;30/2013
dc.subject	cat bonds	en
dc.subject	insurance industry	en
dc.subject	systemic risk	en
dc.subject.ddc	310
dc.subject.ddc	330
dc.subject.ddc	620
dc.title	Catastrophe bonds and systemic risk	en
dc.type	Text	de
dc.type.publicationtype	workingPaper	de
dcterms.accessRights	open access

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