CAT Bond

[humblestudent]

I am trying to understand CAT Bond market and hv found this good artile by MMC:

http://www.guycarp.com/portal/extranet/ ... .pdf?vid=1

Could anyone please help me with the basic structure on Page 4 wherein it is explained that the SPV acts as a insurer/ reinsurer for the Sponsor.

many thanks

warm regards
Humble Student