I have an interview coming up with a company that consults organizations on issuing CAT bonds. Could someone explain to me, in simple terms, what a CAT bond is? From what I've read online, it's pretty much when an insurance company issues a bond w/ a high interest, and if a catastrophe happens they are forgiven for the debt, but if no catastrophe happens, they pay the bondholder a hefty interest. Is that about right? Any help appreciated.