What catastrophe bonds are

J. David Stein defines cat bonds (insurance-linked securities) and explains how insurers offload risk to capital markets.

Play episode from 10:43

chevron_right

Transcript

chevron_right

Transcript

Episode notes

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 and what makes them a unique fixed income security
What to consider in deciding to invest in cat bonds.

Sponsors

Gelt - Taxes Done Right

Delete Me – Use code David20 to get 20% off

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Investments Mentioned

Brookmont Catastrophic Bond ETF (ILS)

Stone Ridge High Yield Reinsurance Risk Premium Fund (SHRIX and SHRMX)

Show Notes