Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How Ultra-Wealthy Families Use Catastrophe Bonds for Yield
In episode 70, Lucas and Luna unpack catastrophe bonds—a $45 billion asset class that lets institutional investors and ultra-wealthy families earn double-digit yields by insuring against hurricanes, earthquakes, and pandemics. They walk through how a typical cat bond works, using the 2021 Louisiana Hurricane Ida as a real-world trigger event, and explain why the asset class has delivered an average spread of 350 basis points over SOFR since 2000. They also discuss the role of special-purpose insurers in Bermuda, the secondary market liquidity challenge, and how a family office might allocate…
The skinny
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