Capital market investors would be attracted to these financial products because they are not correlated with developed world asset prices. As mentioned before, these investments can also hedge against climate risks and GCRs.
Lots of products aren’t correlated to financial markets. (Betting on sports for example). That doesn’t mean investors want to put money in.
Another point is that if they hedge against climate risk, and you think climate risk will materially affect the world, then you should expect these products to be correlated to the market. (But at least then they might have some excess return).
Lots of products aren’t correlated to financial markets. (Betting on sports for example). That doesn’t mean investors want to put money in.
Another point is that if they hedge against climate risk, and you think climate risk will materially affect the world, then you should expect these products to be correlated to the market. (But at least then they might have some excess return).