{"id":103700,"date":"2020-03-12T18:12:15","date_gmt":"2020-03-13T01:12:15","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2020\/03\/425m-in-world-bank-catastrophe-bonds-set-to-default-if-coronavirus-declared-a-pandemic"},"modified":"2020-03-12T18:12:15","modified_gmt":"2020-03-13T01:12:15","slug":"425m-in-world-bank-catastrophe-bonds-set-to-default-if-coronavirus-declared-a-pandemic","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2020\/03\/425m-in-world-bank-catastrophe-bonds-set-to-default-if-coronavirus-declared-a-pandemic","title":{"rendered":"$425M in World Bank catastrophe bonds set to default if coronavirus declared a pandemic"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/425m-in-world-bank-catastrophe-bonds-set-to-default-if-coronavirus-declared-a-pandemic2.jpg\"><\/a><\/p>\n<p>Investors betting big against catastrophic diseases are watching the World Health Organization closely as insurance bonds tied to whether the organization labels COVID-19 a pandemic are set to mature in June.<\/p>\n<p>In 2017, the World Bank designed a new way to raise money: Pandemic Emergency Financing bonds. Over $425 million worth of such bonds, which bet against a global outbreak of infectious diseases and will default if WHO declares the coronavirus a pandemic, were sold by the World Bank in its first-ever issuance of catastrophe bonds. In the event of no pandemic, investors would be paid a healthy annualized return. Meanwhile, the World Bank could use the bonds to insure itself against the risk of a global outbreak.<\/p>\n<p>\u201cAs an investor, we do not want to lose money,\u201d <a href=\"https:\/\/www.wsj.com\/articles\/coronavirus-outbreak-tests-world-banks-pandemic-insurance-11582136298\" target=\"_blank\">said Chin Liu<\/a>, a portfolio manager at Amundi Pioneer, a Boston-based firm that purchased the bonds as a way to diversify the company\u2019s $1 billion catastrophe fund. \u201cBut then, we also understand if it\u2019s unfortunately triggered, it benefits every single person, including ourselves, to keep the virus controlled.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors betting big against catastrophic diseases are watching the World Health Organization closely as insurance bonds tied to whether the organization labels COVID-19 a pandemic are set to mature in June. In 2017, the World Bank designed a new way to raise money: Pandemic Emergency Financing bonds. Over $425 million worth of such bonds, which [\u2026]<\/p>\n","protected":false},"author":550,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-103700","post","type-post","status-publish","format-standard","hentry","category-biotech-medical"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/103700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/550"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=103700"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/103700\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=103700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=103700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=103700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}