GM ☕️

Ever heard of „Cat Bonds“?

Since the market closed on Friday, estimated damages of the LA fires have TRIPLED to $150 billion.

The LA fires are now estimated to be the most expensive natural desaster in US history, by far.

Insurance stocks have been hammered down already but this will likely continue today.

Moreover, many asset managers and pension funds are exposed to Cat Bonds (short for catastrophe bonds) that are a way for insurance companies to share the risk of rare, big disasters with investors, who get rewarded with high interest but face the chance of losing their investment if a disaster strikes.

In other words, the LA fires could spread to the wider financial system via insurance company stocks and these Cat Bonds…

Something to watch when traditional financial markets resume trading today…

Got fiat insurance?

#Bitcoin