"Disaster" bonds are primarily designed to help:

A) Cities recover from economic recessions.
B) Corporations recover from overseas competition.
C) The federal government cope with huge deficits.
D) Animal food producers raise capital to compete internationally.
E) Insurance companies recover from natural disasters.

Disaster Bonds

Financial instruments that are issued to provide insurance companies with liquidity in the event of a disaster, transferring the risk to investors.

Natural Disasters

Severe and unexpected natural events that can cause significant damage to life, property, and the environment.

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damage, injury, treatment, or hardship in exchange for premium payments.