As the world faces a growing number of natural disasters, one investment tool is attracting unprecedented interest from investors worldwide: catastrophe bonds.⁣ ⁣ ‘Cat bonds’ are a form of insurance-linked security. Investors lend money to insurers, and if no major disaster strikes, they earn high returns. But if catastrophe hits, part – or all – of that money is used to cover the losses.⁣ ⁣ And it’s increasingly lucrative: $18bn already this year, surpassing the 2024 total. ⁣ ⁣ So: Would you invest in a high-risk, high-yield ‘cat bond’?⁣ ⁣ #naturaldisaster #markets #bonds #risk #yield