WHO Profits Most from a Pandemic

You probably didn’t notice that the headline was not in the form of a question or that WHO was all capitalized.

(made you look…)

It wasn’t supposed to be a question.  And the W-H-O stands for the World Health Organization.

So now you might be wondering “How does this wonderful organization (Cough! Cough!) profit from a            Pandemic?”

For those who don’t pay much attention to bonds, this is related to the outstanding World Bank Pandemic Bonds issued in 2016.

Ironically, (or NOT) they are due to expire in July 2020…to the tune of over $425 Million.

Coincidence?

I think not.

Let me explain.

In 2016 the World Bank sold these bonds to private investors with yields of 7% and higher (waaayyyy above the going rates) on the premise that investors would lose their money if any of six deadly pandemics hit.

The idea being that the WHO would keep the money and use it to fight the outbreak.

So, let’s do some math here.

If nothing changes between now and the next five months, investors collect their interest and get their principle redeemed upon maturity in July 2020.

However, if for some peculiar reason (Cough! Hairball Cough!) the coronavirus gets classified as a pandemic, the WHO gets the cash and investors get screwed…again.

Hmmm!

Are you starting to see how Everything is Connected?

We’re not trying to make this point again…Well, maybe we are…kinda…sorta.

But this is the kind of stuff that rarely gets mentioned and yet it contributes to the ongoing global economic calamity.

It’s also going to pour more gasoline on the bond market inferno we’ve been warning about.

So, if you want to prepare in advance for calamity, AND thrive in Turbulent Times, join our newsletter crowd (HERE).