MTA Obtains $200 Million of Protection With Catastrophe Bonds
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The Metropolitan Transportation Authority, which suffered $4.8 billion in damage from Superstorm Sandy last year, obtained $200 million of protection with bonds designed to guard against wreckage linked to storm surges.
New York City’s subway operator is paying less than the cost of traditional property coverage by buying protection from MetroCat Re Ltd., a Bermuda-based special-purpose insurer that issued the three-year securities, the MTA said today in a statement. The bonds yield 4.5 percentage points more than three-month Treasury bills, according to data compiled by Bloomberg.