For the first time, Standard & Poor’s has rated a catastrophe bond, also known as a cat bond, based on the level of a storm surge. First Mutual Transportation Assurance Co., a subsidiary of the New York Metropolitan Transportation Authority, is working with a reinsurer in Bermuda that specializes in catastrophe bonds. The bonds have proved so popular that the amount being issued jumped from $125 million to $200 million. MTA stated that they probably could have raised more money, but closed the sale.
“30/10″ Plan: The right track for transportation
According to Charles Chieppo of the Harvard Kennedy School, Los Angeles County appears eager to learn from mistakes made in transportation funding over the last twenty years — such as the Boston “Big Dig” highway …