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: Investments Mentioned Brookmont Catastrophic Bond ETF (ILS) Stone Ridge High Yield Reinsurance Risk Premium Fund (SHRIX and SHRMX) Show Notes Miami Is Entering a State of Unreality by Mario Alejandro Ariza—The … [Read more...]
508: Who Should Bear the Cost? Socialized vs. Market-Based Risk Management
Natural disasters are becoming more severe and costly—who should bear the financial burden? We explore the tension between socialized risk and market-based insurance. Topics covered include: Show Notes California wildfires: What we know about L.A.-area fires, what caused them, who is affected and more by Tim Stelloh, Marlene Lenthang, Rebecca Cohen and Phil Helsel—NBC News Climate change is showing its claws: The world is getting hotter, resulting in … [Read more...]
444: Natural Disasters: Are They Truly Increasing?
From raging wildfires to devastating floods, how are these natural events reshaping our financial landscape? What if anything, should we be doing with our investments as a result? Topics covered include: Show Notes Why the fires in Hawaii have been so bad—The Economist CAMS: monitoring extreme wildfire emissions in 2022—Copernicus A human-driven decline in global burned area by N. Andela et al.—Science Seasonal Trend for Europe—Copernicus Insurers rack up $50bn in … [Read more...]
