Complex triggering mechanism of ‘Ebola bonds’ slows ability to stem outbreak
Bondholders are collecting rich interest payments as DRC struggles to arrest an Ebola outbreak that has killed more than 1,800 people in the past year
14 August 2019 - 14:10
London — A new way of financing the fight against global diseases lured investors with annual returns of more than 11%. The deadly Ebola outbreak in Africa is highlighting shortcomings of so-called pandemic bonds in halting contagions.
After the worst Ebola outbreak on record, two years ago the World Bank began selling the high-yielding securities, modelling them on catastrophe bonds that pay out in response to insurance claims for events such as hurricanes. The pandemic bonds, the first ever, are triggered by patterns in deaths from infectious diseases...
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