ESG & Investing
Catastrophe Bonds Dodge Losses After Beryl Hits Jamaica
- Air pressure required for payout wasn’t reached, Plenum says
- Jamaica now faces task of repairing damages after huge storm
A woman looks at a beach littered with trash in the aftermath of Hurricane Beryl at Bull Bay, Jamaica on July 4.
Photographer: Ricardo Makyn/AFP/Getty ImagesThis article is for subscribers only.
Investors in bonds intended to help Jamaica cover the costs of a natural catastrophe won’t be affected by the havoc wrought by Hurricane Beryl, even as the prime minister declares the entire Caribbean island a disaster area.
As the earliest category five hurricane on record, Beryl made landfall in Jamaica on Wednesday, bringing high-speed winds, sheets of rain and a wave of destruction to the island nation. Investors in the country’s $150 million catastrophe bond were monitoring the situation closely to assess whether they’d be called on to pay up and help cover part of the damage.