In Plus episode 549, we discuss historical cumulative losses for catastrophe bonds, the premium/discount experience of the Brookmont Catastrophic Bond ETF (ILS) and questions on why its dividend yield is so low. We also revisit the gold and silver rally and answer a member's question about rebalancing out of gold. Finally, we consider the background and views of newly nominated Federal Reserve Board Chair Kevin Warsh. … [Read more...]
549: Why Catastrophe Bonds Are Yielding 12%, and Should You Invest?
A new ETF allows individuals to earn income by insuring against natural disasters through investing in catastrophe bonds. We break down the historical returns, risk, fees, and structure of this intriguing investment opportunity. Topics covered include: What types of natural disasters are increasing How insurance companies use reinsurance and cat bonds to protect against extreme losses Why home insurance premium increases should be lower in 2026 How cat bonds are structured … [Read more...]