ESG Global Resilience Basket (USD or USDC, DAI)

The ESG Global Resilience Basket is an innovative fixed income product with attractive yield which shows low correlation to traditional markets and offers high diversification, flexibility, as well as access to a broad and deep investment space. Moreover, it is also accessible to digital asset investors. The thematic investment basket consists of a diversified portfolio of insurance-linked instruments, such as industry loss warranties, catastrophe bonds and derivatives. These instruments are usually issued by insurance and reinsurance companies to transfer risk to capital markets to cover contingent insurance claims and build regulatory capital buffers. The risk assumed by the investor is therefore tied to clearly defined natural events (e.g., earthquakes, hurricanes, floods, wildfires). The instruments are index-based and triggered by occurrence of pre-defined thresholds (parametric) and thus do not follow an indemnity principle. Transaction counterparty credit risks are eliminated through the investment structure with full collateralization; In addition to earning premiums paid, the basket generates risk-free return by investing collateral at secured overnight funding rates (SOFR).

For professional investors and selected jurisdictions only.