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Catastrophe Bond ETF Launches 🌍
Ryan Serkes
April 03, 2025
The
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Hey Daily Traders,
The Brookmont Catastrophic Bond ETF (ILS) has made its debut, offering a fresh avenue for investors to diversify amidst market volatility. This unique ETF, tied to natural disasters, has sparked significant interest, though it carries challenges such as high expense ratios and liquidity concerns, underscoring the need for expertise in catastrophe bonds.
Meanwhile, the sale of the Skims headquarters in Hollywood for $105 million highlights a renewed interest in high-quality office investments. This transaction not only reflects the allure of prime real estate but also signals a broader return-to-office trend, with companies like Skims valuing the collaborative potential of physical workspaces.
Here's what's happening today:
- 📈 New ETF offers catastrophe bond investment.
- 🏢 Skims HQ sold for $105 million in Hollywood.
- 💰 Trump imposes sweeping tariffs on imports.
- 🏭 Coal plant to become gas-powered data center.
- 🚫 Ohio stops unlicensed sports betting by crypto firms.
Question
Would you consider investing in a catastrophe bond ETF like Brookmont's, despite the high expense ratio and complexity, for the sake of diversifying your portfolio?
Reply to this email with your answer
Stock Market  The Brookmont Catastrophic Bond ETF (ILS), the world's first catastrophe bond exchange-traded fund, offers investors access to securities tied to natural disasters. This ETF, launched by Brookmont Capital Management, provides a non-correlated asset class amidst market volatility, appealing to those seeking diversification. Despite a high expense ratio of 1.58%, the ETF recorded significant trading volume on its first day, indicating strong interest from investors. However, the ETF faces challenges such as the complexity of catastrophe bonds and potential liquidity issues. Without a lead market maker, the fund relies on secondary market makers to manage pricing and trading. As investors explore this unique asset class, understanding reinsurance contracts becomes crucial, highlighting the need for expertise in navigating these investments. Key Takeaway
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Real Estate Newmark Group has facilitated the $105 million sale of 1601 Vine, a Class A office building in Hollywood, California. The property, anchored by Skims Body, Inc., is fully leased and features high-end amenities such as panoramic views and on-site photography studios. The sale reflects a growing interest in high-quality office investments, especially those with top-tier tenants like Skims, which has committed to a long-term lease. The transaction underscores a broader return-to-office trend, with companies like Skims emphasizing the importance of physical workspace for collaboration and innovation. The property's prime location along the Hollywood Walk of Fame and its recent renovations make it an attractive investment for contrarian investors seeking premier office products at historically attractive cap rates. Key Takeaway
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Stock Market  President Donald Trump has announced sweeping 'Liberation Day' tariffs, imposing a 10% baseline rate on all imports, with higher rates for specific countries. This move, described as a 'Declaration of Economic Independence,' aims to boost domestic manufacturing by making imports more expensive. Trump's tariffs are expected to take effect soon, with potential for significant economic impact. While the administration expresses confidence in reviving the U.S. industrial base, critics warn of potential inflation and strained international relations. The tariffs could disrupt global trade and increase consumer prices in the U.S., leading to economic uncertainty. The move represents a significant shift in U.S. trade policy, with potential long-term implications for the economy. Key Takeaway
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Real Estate  The former Homer City Generating Station in Pennsylvania is set to be transformed into a $10 billion natural gas-powered data center campus. The project, led by Homer City Development, will utilize existing infrastructure to support the growing energy demands of Big Tech companies. The development will feature seven gas-fired turbines, providing up to 4.5 gigawatts of electricity to power data centers on site. This transformation reflects a broader trend in the energy sector, as companies seek new power sources to support artificial intelligence and cloud computing applications. The project highlights the shift from coal to cleaner energy alternatives, driven by environmental regulations and competition with cheaper natural gas. The redevelopment of the site is expected to begin this year, with power generation anticipated by 2027. Key Takeaway
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Crypto  The Ohio Casino Control Commission has issued cease-and-desist letters to KalshiEX LLC, Robinhood Markets Inc., and Crypto.com for offering unlicensed sports betting products. These companies have been providing event contracts on sporting events, which the state considers as sports wagers requiring a license. The commission highlighted concerns about consumer protections and the accessibility of these products to individuals under 21. Ohio legalized sports betting in 2023, but operators must obtain a license to conduct such activities legally. The state's regulatory framework aims to ensure consumer protections and responsible gaming practices. The companies have until mid-April to comply with the order, or they may face civil and criminal penalties. This crackdown underscores the importance of adhering to state regulations in the rapidly evolving landscape of sports betting. Key Takeaway
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Today's Technical Analysis
RSI Buy | MFI Hold | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Buy |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Buy | WillR Buy | AO Hold |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Hold |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Hold | BBANDS Hold | ULTOSC Buy | STOCH Buy |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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