Philippines looks to issue cat bond

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By Jasper Cox
14 Jan 2019

The Philippines is preparing a sovereign catastrophe bond, the World Bank said on Monday. The imperilled country could be the next to use the instrument as insurance against natural disasters.

The World Bank will support the bond issue, which will provide cover for more extreme events than those covered by existing insurance provided by the supranational agency.

Cat bonds transfer the risk of disasters onto the capital markets: bondholders receive a premium but lose principal if the bond ...

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