Peru, investors await cat bond decision after earthquake

By Jasper Cox
30 May 2019

Peru could receive a payout from its World Bank-issued catastrophe bond after an earthquake hit the country’s Amazon region on Sunday morning. Investors are expecting a 30% loss to principal, but this will not be confirmed for several weeks.

The earthquake measured 8.0 in magnitude, and left two people dead and at least 30 injured.

In February last year, the World Bank priced a $1.36bn cat bond giving earthquake protection to Mexico, Chile, Colombia and Peru: countries making up the so-called Pacific Alliance. This was the ...

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