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We were looking at this in the office on Friday, watching Hurricane Patricia (it's not much use for the high-speed predictions we usually need, but it's a reall

We were looking at this in the office on Friday, watching Hurricane Patricia (it's not much use for the high-speed predictions we usually need, but it's a really beautiful way to visualise/understand the data after the fact). The Mexican government prepares for these storms, issuing catastrophe bonds that pay a high rate of return but lose all their value if high-impact storms hit populated areas so the government can fund their aid/reconstruction efforts. As someone who sometimes finds it difficult to follow all the links between what we do and real-world value, it's great seeing financial products being used so directly for good. [1] https://www.windyty.com/?2015-10-22-12,17.958,-101.558,5 https://www.windyty.com/?2015-10-22-12,17.958,-101.558,5 (hit play and watch the next 48 hours, 200 mile an hour winds disappear as soon as they hit land, it's amazing)

pcrh 11y ago
>catastrophe bonds Would you care to expand on these and how they work? They sound interesting!
- awch 11y ago
  Cat bonds were developed by insurance companies to offset the potentially large losses associated with natural disasters. Investors purchase cat bonds, which pay interest as long as no predefined trigger conditions are met. If the trigger condition, such as a damaging hurricane, occurs, investors forfeit their principal, which is used to pay claims arising from the catastrophe. Investors like them because they offer enticing, uncorrelated returns, and insurers like them as an alternative to reinsurance. You can learn more about them here: http://www.artemis.bm/library/what-is-a-catastrophe-bond.html http://www.artemis.bm/library/what-is-a-catastrophe-bond.htm...