Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How Ultra-Wealthy Families Use Weather Derivatives
Lucas and Luna dive into the world of weather derivatives — financial instruments that allow ultra-wealthy families and agribusinesses to hedge against temperature and rainfall swings. Lucas explains how a California vineyard used a cooling-degree-day swap to protect a $12 million harvest, and why family offices now allocate 2–5% of portfolios to these contracts. They discuss the Chicago Mercantile Exchange's role, the $25 billion notional market, and how this fits into broader alternative asset strategies. A fascinating look at a niche but growing corner of structured finance…
The skinny
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