Short Hurricane Bonds?

Did you know that there are bonds you can buy that help insurance companies raise capital in case of a hurricane-related catastrophe? In the last three years, with very low levels of tropical storm activity in the U.S., those bonds have paid off handsomely.

Roger Pielke, Jr., thinks it may be time to short hurricane bonds because the “hurricane drought” will end one of these days, “perhaps in spectacular fashion.”

I don’t know whether these bonds are even “short-able” but I agree with Roger that the hurricane drought will end, likely sooner than later.

Comments are closed.