PIMCO Says Catastrophe Bonds Are An ESG Asset, OK's Them For New Funds

Not sure if cyber, earthquake or terrorism perils fit the definition of ESG but maybe some of the other stuff: hail in Texas, wind in Germany, hurricanes in Los Angeles (what? hey, it almost happened back in the day).
Anyhoo, from Artemis:

Investment management giant PIMCO (Pacific Investment Management Company LLC) believes catastrophe bonds can be an ESG (environmental, social and corporate governance) appropriate investment, adding them as fixed income assets two of its new funds are able to allocate to.

PIMCO has launched the PIMCO Climate Bond Fund and the PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund, both of which will be able to invest in catastrophe bonds and potentially other insurance or reinsurance linked securities instruments.

Both of these funds target delivering investors an ethical, climate aware, source of return, with the Climate Bond Fund aiming for “optimal risk adjusted returns… while giving consideration to long term climate related risks and opportunities,” and the Active ESG Fund targeting “maximum current income, consistent with preservation of capital and daily liquidity, while incorporating PIMCO’s ESG investment strategy.”

Catastrophe bonds, or “event-linked exposure” as the prospectus for each fund puts it, are detailed as viable assets that the two funds can allocate to.
The PIMCO Climate Bond Fund seeks to invest in, “a broad spectrum of climate focused instruments and debt from issuers demonstrating leadership with respect to addressing climate related factors.”...

....MUCH MORE

If you are really, really positive that you know what is going to happen you can short munis in exposed areas. The interest payments will grind against you as you wait for the default but it's a total-return game so go for it.
Or if you want the other side of the action you can offer to insure President Obama's new oceanfront property and bet against both landfalling 'canes and sea level rise (with the extra-premium flood coverage rider) while collecting the premiums.