CORONAVIRUS COULD CAUSE CAT BOND LOSSES

The Coronavirus could cause two cat bonds to be triggered and investors to suffer losses, an insurance-linked securities (ILS) fund has warned, Plenum Investments said that two cat bonds placed by the World Bank in 2017 provide coverage against outbreaks of serious infectious diseases. At least 250 fatalities are required to enable the riskier tranche to start paying out. While this factor is met, other factors also measure duration, speed of spread, the spread of the disease and other critical parameters, Plenum said.