Cédulas hipotecarias are Spanish covered bonds that banks issue to raise money. These bonds work differently from regular bonds because they come with extra safety features. Spanish banks back these bonds with home mortgages they’ve given to their customers. This backing means investors who buy cédulas hipotecarias have a strong chance of getting their money…
Ceded premiums are money that an insurance company pays to another insurance company. The other company is called a reinsurer. The reinsurer takes on some of the risk from the first insurance company. Reinsurance helps spread out risk among many companies. Why insurance companies use ceded premiums Insurance is a business where companies take on…
Ceding means you give something away to someone else. In the world of insurance, ceding happens when one insurance company gives some of the risk it is covering to another insurance company. The company that is ceding the risk is called the insured or the ceding insurer. The company that takes on the risk is…
A ceding company is a company that buys insurance from another insurance company. This is called “ceding” the risk. The ceding company pays the other insurance company to take on some or all of its risks. Why Do Companies Cede Risk? There are a few main reasons why a company might want to cede its…
“Catch a falling knife” is a saying in the world of investing. It describes when an investor buys the stock of a company that has dropped a lot in price very quickly. The investor hopes the price will go back up soon. What it Means Imagine a sharp knife falling straight down. Trying to catch…
A catastrophic loss is a really bad thing that happens which causes a lot of damage and costs a huge amount of money. It doesn’t happen very often, but when it does, it’s a big deal. A catastrophic loss comes from something called a catastrophic hazard. Some examples of catastrophic hazards Catastrophic hazards are things…
A catastrophic hazard is a type of risk event that does not happen very often but causes huge losses when it does happen. These events are very severe but have a low frequency. This means there is usually a big difference between the losses people expect and the actual losses that happen. Examples of catastrophic…
A catastrophe reinsurance swap is a special type of financial agreement. Two groups or companies sign a contract. This contract has a couple main parts that are important. Triggering event The contract will say that a “triggering event” has to happen first. This triggering event is usually some really bad thing. It could be a…
Catastrophe Per Occurrence Excess of Loss (Cat XOL) is a type of reinsurance. Reinsurance is insurance for insurance companies. It protects them from really big losses. With Cat XOL reinsurance, the insurance company is protected if a whole bunch of bad stuff happens all at once from the same event, like a hurricane or earthquake….
Marketing mix models are an old way to figure out how marketing stuff like ads and promos affect sales. They use statistics to look at sales data and marketing data over a long time. Then they try to find patterns that show how the marketing caused the sales. These models have been used by big…
