In general, the transfer of risks assumed by an insurance company to contracting parties (retrocessionaires) in return for an agreed premium. – In particular, the securitization of risks assumed by a reinsurer. In this process, these risks are passed on in private placements via usually tranched catastrophe bonds with varying tranche thicknesses, which are then staged according to the waterfall principle. Buyers of such securities are mainly hedge funds. – See assets, illiquid, credit default swap, credit linked notes, embedded value securitization, insurance-linked securities, catastrophe bonds, credit derivative, loan securitization, portfolio insurance, risk mitigation techniques, extended, risk transfer, risk transformation, banking, risk assumption principle, single hedge fund, total return swaps, securitization structure, loss absorption, weather derivative, XXX-insurance-linked securities.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/