Catch bond

A "catch bond" is a type of financial instrument that has gained attention in the context of debt financing and risk management. It is a form of bond that typically involves a mechanism where the interest rate or some other financial incentive adjusts based on the borrower's creditworthiness or financial health. The key feature of a catch bond is that it may offer a higher yield or a change in terms if certain conditions are met, potentially acting as a deterrent against default.