Author Topic: pandemic bond  (Read 117 times)


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pandemic bond
« on: January 31, 2020, 08:54:19 am »
2017 :

The insurance window provides coverage of up to $425 million to all IDA-eligible countries
for diseases that are listed by WHO as likely to cause major epidemics if contagion spreads
across national borders. These include new pandemic influenza, SARS, MERS, Ebola,
Marburg and Crimean Congo hemorrhagic fever, Rift Valley fever, and Lassa fever.

the insurance window has purchased $425 million aggregate insurance at an annualized
premium cost of $36.2 million (or equivalent to 8.5%).
GC Securities* Supports First Ever World Bank Catastrophe Bonds and Catastrophe-linked
Swaps to Combat Infectious Disease: GC Securities, a division of MMC Securities LLC,
a U.S. registered broker-dealer and member FINRA/NFA/SIPC, participated in today’s
pricing of bonds and catastrophe-linked swaps supporting pandemic risk.
12.07.2017 · Munich Re, one of the structuring agents of the facility, says it is designed
to “fill the pandemic-response funding gap before large-scale disaster and humanitarian
relief funding is mobilised”. The World Bank reckons that if the PEF had existed in 2014,
about $100 million could have been mobilised from it as early as July of that year –
just a few months after the first reports of the Ebola
 One of the new bonds, priced at 6.5 per cent over six-month US Libor, will cover
pandemic influenza and coronaviruses such as SARS,
while the other, priced at 11.1 per cent over US Libor, will cover filoviruses such as Ebola,
and several types of fever.
Swiss Re, Munich Re , GC securities support this
the pandemic bond will pay if coronavirus advances,
buyers/investors may lose their $300M


back from 2007 concerning the H5N1 risk :

risk summary June 2007:
from the prices for mortality bonds I calculated that the market
estimated the probability of an excess mortality worse than 1918 in USA:
from Vita I in Nov.2003 as 4% within 3 years
from Vita II in April 2005 as 8% within 5 years
from Tatan in April 2006 as 7% within 3 years , 2006 : 20% probability that the next pandemic
will be worse than 1918

now they call it  " Insurance-linked securities (ILS) "
and  "death bond"
also called Mortality Catastrophe Bonds (MCBs),
also CATM , catastrophe bonds

Bis zu 195,83 Millionen Dollar aus der "Pandemic Emergency Financing Faciliy" (PEF)
könnten für betroffene Entwicklungsländer ausgeschüttet werden, berichtet die Zeitung.
Die Höchstsumme fließt allerdings nur, wenn eine Reihe konkreter und belegbarer
Vorbedingungen eingetreten sind. So muss es zu einem globalen Ausbruch mit
mindestens acht betroffenen Ländern gekommen sein, dazu zu mindestens
2500 Todesfällen in den sogenannten "IDA-Ländern". Zu dieser 76 Staaten
umfassenden Gruppe zählt die Weltbank Entwicklungsländer mit einer niedrigen
Kreditwürdigkeit und einem Bruttoinlandsprodukt von maximal 1175 Dollar pro Kopf
und Jahr wie Kamerun, den Sudan oder Nepal.

« Last Edit: February 08, 2020, 04:08:29 am by gsgs »

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