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Volume 14
Issue 2
Online publication date 2018-02-22
Title Are catastrophe bonds effective financial instruments in the transport and infrastructure industries? Evidence from international financial markets
Author Fabio Pizzutilo, Elisabetta Venezia
Abstract We analyse the effectiveness of catastrophe bonds for the financial management of catastrophic risk in the transport and infrastructure industries. We illustrate how these financial instruments are becoming a valuable tool for non-financial firms in the risk management of catastrophic events, supplementing the traditional insurance/reinsurance channel, especially during times of constraints in the insurance industry. We also review cat bond issues sponsored by infrastructure and transport companies, highlighting the usefulness of these structured financial instruments in the management of the catastrophe exposure in these industries. Policy indications are finally given. 
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Keywords Catastrophe bonds, risk management, investment analysis, public investment, infrastructures, transportation
Pages 256-267
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