Skip to Content

securitization of risk

Securitization of risk is the practice of converting known potential risk scenarios, such as the potential for a hurricane, into a marketable security.

On This Page

securitization of risk

Securitization of risk is the practice of converting known potential risk scenarios, such as the potential for a hurricane, into a marketable security.

Additional Information


The best example to date is the "cat bond," a bond future (commodity) traded on the Chicago Board of Trade.