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Parametric Catastrophe Bonds for Sovereign Disaster Risk | World Bank Group Treasury - World Bank Group

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As natural disasters grow increasingly extreme, developing countries must establish advanced risk-transfer strategies to safeguard their physical and fiscal infrastructure. The World Bank Group Treasury leverages its deep institutional expertise and Triple-A credit ratings to issue innovative catastrophe bonds (cat bonds) on behalf of member states. These capital market instruments transfer severe climate and geological exposure to specialized bond investors. Because they utilize parametric triggers tied to physical parameters rather than lengthy damage assessments, these transactions ensure rapid liquidity without increasing a nation's sovereign debt burden.

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