Mexico Is Offering Bonds to Cover a Major Quake - New York Times
I wrote a paper on cat bonds during grad school. They are fascinating securities and have lots of attractive features for investors, including effectively zero correlation to other asset classes and high yields. My paper modeled Berkshire Hathaway's super-cat reinsurance business and showed that it was responsible for more of Berkshire's success than most people gave it credit for. Cat bonds finally let a wider class of investors in on the market Warren Buffet has cornered for more than thirty years.