Catastrophe Call

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Dictionary Says

Definition of 'Catastrophe Call'

A call provision in municipal bonds that allows for the early redemption of the instrument if a catastrophic event occurs and severely damages the project financed by the issue. Possible catastrophes will be listed in the bond's indenture and are often callable at par.
Investopedia Says

Investopedia explains 'Catastrophe Call'

Catastrophe calls provide municipalities insurance against natural disasters. For example, let's say an earthquake destroyed a newly constructed bridge. Since the construction cost was financed by a municipal bond issue (with a catastrophe call option) and the bridge's destruction does not allow it to generate the revenue expected to repay the debt, the bonds may be called at par immediately.
Search results for

'Catastrophe Call'

  • Iron Condors Fly On Fragile Wings

    http://www.investopedia.com/articles/optioninvestor/08/iron-condors-risk-reward.asp
    ... 1575 put instead, the loss is smaller ($2,500 or less) if that catastrophe occurs ...
    Thus, it's important to sell call and put credit spreads that meet your profit ...

  • Series 7 Study Guide - Derivatives - Index Options | Investopedia

    http://www.investopedia.com/exam-guide/series-7/derivatives/index-options.asp
    ... a call writer can be wiped out if the value of the underlying index rises sharply,
    and may be willing to take a lower premium to avoid risking catastrophe. ...

  • Gaming Industry In Desperate Battle

    http://stocks.investopedia.com/stock-analysis/2011/Gaming-Industry-In-Desperate-Battle-ATVI-ERTS-TTWO-KNM-MSFT-SNE-NTDOY0318.aspx
    ... Console Wars Even before the catastrophe in Japan, this year has already been a ...
    Activision Blizzard's (Nasdaq:ATVI) "Call of Duty: Black Ops" rode its fourth ...

  • Here We Go Again – Markets Continue To Move On Governments

    http://stocks.investopedia.com/stock-analysis/2011/Here-We-Go-Again--Markets-Continue-To-Move-On-Governments-TLT-SHY-GLD-DB-UBS-MS-GS0926.aspx
    ... like governments on each side of the Atlantic continue to call the tune ... Maybe Europe
    will avert catastrophe and companies like Caterpillar (NYSE:CAT), IBM (NYSE ...

  • Japan's Quake Won't Kill Nuclear Power

    http://stocks.investopedia.com/stock-analysis/2011/Japans-Quake-Wont-Kill-Nuclear-Power-CCJ-EXC-SHAW-URZ-URRE0315.aspx
    ... Was it the right call, or a knee-jerk reaction that will be undone in the ... The Bottom
    Line As is so often the case, worries of a repeated catastrophe will swell ...

  • Don't Count Copper Out Just Yet

    http://stocks.investopedia.com/stock-analysis/2011/Dont-Count-Copper-Out-Just-Yet-WIRE-JJC-SCCO-FCX0516.aspx
    ... The likely answer is soon, barring a catastrophe. TUTORIAL: Commodities Guide: Copper. ...
    In that regard, China's overseers made a reasonably-wise call. ...

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