The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Healthcare cat bond could mitigate future crises

The bond market could be the answer to financing better preparedness for the next global pandemic.

syringe-4964598_1280 960x535.jpg

As the world cautiously cheers news of potential vaccines against Covid 19, attention should turn towards ways in which countries can better prepare for the next pandemic.

Many of those outside Asia could hardly have been worse prepared, the consequences of which can be seen as the economic and healthcare tolls continue to rise in, for example, the US and UK.

What is to be done?

Considering the yawning budgetary deficits that all nations now face, one of the first things should be to figure out how to pay for those preparations in the first place.

The capital markets have already stepped up impressively in the funding of vaccine distribution for the International Finance Facility for Immunisation (IFFI), and they should be called on again when it comes to funding better defences against the next pandemic.

Funds

The IFFI tapped the market at the end of October with its first dollar-denominated syndication since 2017 in order to disburse funds to the vaccine alliance Gavi to help to support the development and procurement of Covid-19 vaccines.

The $500 million three-year deal attracted over $1 billion in indications of interest. This kind of appetite could be tapped to finance better preparedness too, through funding stockpiling of medical equipment and PPE, and coordinating any emergency response.

This

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree