HANetf has announced the launch of KRC Cat Bond UCITS ETF (ticker: CATB).
CATB is Europe’s first UCITS ETF providing access to the catastrophe bond (cat bond) market. Managed by King Ridge Capital, a specialist in insurance-linked securities (ILS), the ETF invests in a diversified portfolio of cat bonds that transfer natural disaster risk, such as hurricanes and earthquakes, from insurers to capital markets.
The firm writes that cat bonds offer income that is largely uncorrelated with traditional markets, providing a powerful diversifier for multi-asset and fixed income portfolios. Their returns are driven by natural disaster events rather than economic cycles, with historically near-zero correlation to equities and bonds.
Current yields typically range from 8–10 per cent, combining collateral income with catastrophe risk premiums, and their short-duration structure helps reduce sensitivity to interest-rate volatility. The asset class has shown resilience through past periods of market stress, including delivering positive returns in 2008.
The strategy invests in a globally diversified portfolio of cat bonds that transfer well-defined natural disaster risks – such as US hurricanes, US and Japan earthquakes, and European windstorms – from insurers and reinsurers to capital markets investors.
HANetf writes that portfolio construction is guided by disciplined, analytics-driven underwriting, assessing factors such as peril diversification, expected loss, spread, trigger structure, sponsor quality, and liquidity.
Diversification is further reinforced through strict limits by peril, region, and sponsor, helping build a resilient portfolio that can continue to generate returns even when individual regions experience losses, the firm says.
Rick Pagnani, CEO & Lead Portfolio Manager, King Ridge Capital Advisors, says: “Bringing Europe its first cat bond ETF is about more than breaking new ground – it’s about giving investors a fresh way to build resilient portfolios. Cat bonds stand apart because they’re driven by nature, not markets, and that makes them a powerful diversifier. We’re excited to open the door to this innovative strategy and help folks invest in something that matters.”
Hector McNeil, Co-Founder and Co-CEO of HANetf, says: “We are delighted to bring Europe’s first catastrophe bond ETF to market. The launch of CATB reflects HANetf’s commitment to expanding investor access to specialist asset classes through high-quality partners. Catastrophe bonds have grown into an important segment of global fixed income, offering return drivers that are fundamentally different from traditional markets. In an environment where investors are seeking uncorrelated income and robust diversification, this type of exposure can play a meaningful role in portfolio construction.
“Partnering with King Ridge Capital brings deep expertise in insurance-linked securities and catastrophe risk analysis to the product. Their disciplined, analytically driven approach aligns with our mission to deliver thoughtfully designed, institutionally managed products to investors across Europe. We are pleased to support innovation in this space and to broaden the range of tools available to investors.”
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