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Catastrophe bond holders weather the storm

Destruction from hurricane Milton
Photo: Joe Raedle/Getty Images

Though battered by several serious hurricanes, catastrophe bond holders face a relatively soft landing.

Despite gloomy predictions from early last week, total damages from Hurricane Milton were less serious than predicted, with the storm narrowly missing Tampa. The near-miss has given the expanding insurance-linked securities market a boost.

Catastrophe bonds, or cat-bonds, are issued by insurers or government entities to manage their exposure

But