Grandmother always said "If you are getting more than the risk-free rate of return you are taking on risk somewhere." She was really emphatic about that.
From Oxbridge Re via Globe NewsWire, March 4:
Oxbridge / SurancePlus Announces Two RWA Tokenized Reinsurance Offerings for its 2025 - 2026 Season: Targeting Returns of 20% and 42%
GRAND CAYMAN, Cayman Islands, March 04, 2025 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR) (“Oxbridge Re”), together with its subsidiary SurancePlus, is engaged in the tokenization of Real-World Assets (“RWAs”), initially with tokenized reinsurance securities, and in providing reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States, today announced the launch of its 2025 tokenized reinsurance offerings.
For the first time, investors can choose their preferred risk-return profile with two distinct options:
- EtaCat Re – 20% (Balanced Yield)
- ZetaCat Re – 42% (High Yield)
Invest now at SurancePlus.com/invest
These blockchain-powered offerings open access to an asset class that was previously exclusive to institutional investors and ultra-high-net-worth individuals. Now, a wider range of investors can access SurancePlus' tokenized reinsurance securities, targeting high-yield returns backed by Real-World Assets (RWAs) through real-world reinsurance contracts.
How It Works
Investors in EtaCat Re have a targeted annual return of 20%, while investors in ZetaCat Re have an annual targeted return of 42%.
Each security-backed token is priced at $10 per share, with funds used to invest in reinsurance contracts. Investors will receive 3.5% APY on their invested funds until contracts go live on June 1, 2025. Returns are then distributed annually based on underwriting performance.
These tokens provide exposure to RWA-collateralized reinsurance contracts through its licensed Cayman Islands reinsurance entity, Oxbridge Re NS.
Investment opportunities are available to U.S. investors under SEC Rule 506(c) and to non-U.S. investors under Regulation S of the Securities Act of 1933....
....MUCH MORE
Ummmmm....the current (June 17) risk-free rates are 4.23% for 1-month T-bills and 4.42% for 3-month T-bills.
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2025
And even using these instruments you are taking on a risk, reinvestment risk.