Special purpose vehicle (SPV)
A separate legal entity that sells reinsurance or insurance to the sponsor, issues the bonds to investors and holds the proceeds as collateral.
Catastrophe bond
A security whose principal is at risk: investors receive a coupon and are repaid at maturity unless a specified disaster meets the trigger, in which case the collateral pays the sponsor.
Additionality
The principle that development finance should enable outcomes or investment that would not have happened without it, rather than displacing commercial capital.
Mobilisation ratio
The amount of commercial or private finance mobilised per unit of concessional or public finance; Convergence reported USD 5.33 of commercial finance per concessional dollar in 2025.
First-loss capital
The most junior position in a capital structure, which absorbs losses before other investors; often provided by donors or philanthropies in blended funds.
Concessional finance
Finance provided on terms more generous than the market, such as below-market rates, longer tenors or junior positions, used in blended structures to make a transaction viable for commercial investors.
Blended finance
The strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries (OECD).
Nexus Governance Council Architecture
Nexus Governance Council Architectureis the governance and participation model that explains how The Global Risks Alliance (GRA), The Global Risks Forum (GRF), and The Global Centre for Risk and Innovation (GCRI) organize financial-services stewardship, public-good leadership, institutional capability, technical readiness,…
Read MoreFrom Financial Services to Whole-of-Society Resilience: Why GRA Exists as the Business League for Systemic Risk
Banks depend on borrowers. Insurers depend on risk pools. Reinsurers depend on global loss patterns. Asset managers depend on issuer performance, markets, infrastructure, liquidity, and trust. Capital markets depend on disclosure, settlement, confidence, and public institutions. Development finance depends on…
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