What is an Offering Circular?
The primary disclosure document for a cat bond, detailing structure, trigger mechanics, risk factors, and collateral arrangements.
Offering Circular
The primary disclosure document for a cat bond, detailing structure, trigger mechanics, risk factors, and collateral arrangements.
How it works in practice
Before a cat bond prices, the structuring agent distributes the offering circular to prospective investors. The document runs several hundred pages and describes the covered perils, the trigger mechanics, the SPV's legal structure, the collateral arrangement, the catastrophe model results, and the risk factors. Investors rely on this document as the definitive source of the bond's terms.
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