Which of the Following Statements Regarding Catastrophe Bonds Is Not

question 100

Multiple Choice

Which of the following statements regarding catastrophe bonds is not true?

• A)The yields are higher than traditional bonds like treasuries.
• B)The yields are higher than asset-backed securities and commercial mortgage-backed securities.
• C)There currently do not exist any potential challenges to the catastrophe bonds market.
• D)Institutional investors are particularly interested in catastrophe bonds because of their portfolio diversification benefits.
• E)Catastrophic property damage risks do not correlate with the risks of other asset classes.

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