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Bond Prices and Yields
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Historically, the Cocos plate boundary produced the 1985 Michoacan earthquake
of magnitude 8.1 Mw Richter scale. It destroyed hundreds of buildings and
caused thousand of deaths in Mexico City and other parts of the country. It is
considered the most damaging earthquake in the history of Mexico City. The
Mexican insurance industry officials estimated payouts of four billion dollars. In
the last decades, other earthquakes have reached the magnitude 7.8 Mw Richter
scale.
For earthquakes, the Mexican insurance market has traditionally been highly
regulated, with limited protection provided to homeowners and reinsurance by
the government. Today, after the occurrence of an earthquake, the reconstruction
can be financed by transferring the...
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Bond Prices and Yields
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Bond Prices and Yields
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