Cat Bonds: High-Risk, High-Reward Investments

Catastrophe bonds, or cat bonds, are high-risk, high-yield investments that aid governments and insurers in disaster recovery. Originating in the US in the 1990s, these bonds offer attractive returns and portfolio diversification. However, their complex conditions and potential for losses in mid-sized events make them unsuitable for novice investors. Currently, large institutions dominate the market, but new investment funds and exchange-traded funds are opening up opportunities for individual investors.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.