Wall Street Makes Big Money from Surge in Climate Disasters

Douglas McIntyre, Editor-in-Chief at Climate Crisis 24/7, explains how catastrophe bonds—or “cat bonds”—have become a booming financial tool amid worsening climate events. Originally developed to help insurers manage losses from disasters, these instruments are now being issued at record levels. McIntyre draws a parallel to the 2008 financial crisis, noting that some of the same players who bet on mortgage defaults are now speculating on climate risk. As extreme weather events grow more frequent and costly, cat bonds offer a way for insurers to offload financial exposure to investors.