NHC’s Patricia pressure uncertainty could be unhelpful for MultiCat

One of the key elements of any catastrophe bond trigger needs to be a transparent, rapid and fair payout process. This is especially true for parametric of index triggers, where a third-party may be reporting data on which decisions over losses are made.

This brings us to an interesting aside to the announcement of the National Hurricane Center’s final tropical cyclone report for hurricane Patricia yesterday, which promises to bring forward the final determination of any payout being made by investors in the stricken $100m tranche of MultiCat Mexico Ltd. (Series 2012-1) Class C catastrophe bond notes.

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