Climate Change Will Eat Your Bond Portfolio

A monster is lurking just around the corner

Image for post
Image for post
Image for post
Image for post
Workers trying to waterproof a damaged roof after Hurricane Michael. Source: Wikimedia
Image for post
Image for post
A road in the Roseau of Puerto Rico area is littered with structural debris, damaged vegetation and downed power poles and lines. Source: Wikimedia
  1. Do you have a sense when you invest in bonds that the asset you hold is another party’s liability? (Thanks to Real Vision’s interview with Anthony Deden for underscoring this point to me)
  2. Have you attempted to increase the yield on your bond portfolio by investing in riskier assets or in longer-tenor bonds? (Both of which strategies expose an investor to increased sensitivity in changes in yields…)

Written by

Founder of IOI Capital. Passionate about harnessing the power of the free market to solve humanity’s biggest adaptation challenge.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store