Which of the Following Statements Regarding Catastrophe Bonds Is Not

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.