Pandemic Bonds Issued By The World Bank in 2017 – New Findings

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Pandemic Bonds, created by the World Bank in June 2017 are an instrument that, technically should not exist, yet they do and I am mad that I missed out on the opportunity.

I normally aim to release one article on a Wednesday each week.

This week, I purposely did not want to produce anything because I was so disgusted with the events that have taken place recently (in Australia particularly) that I didn’t know what to write and how to conceal the true emotions I feel, about that which I wish to narrate. I

sat down and began writing on Monday (it usually takes me 2 days to properly research and produce high quality content) and it was 5 pages of just disgust – stuff most of you won’t be interested in.

So I’ve heavily edited my original piece and have tried to focus on the three things I wish to discuss as per the headline of this article.

Firstly, lets talk about the Pandemic Bonds.

On the 28th of June, 2017, the World Bank announced that it was setting up a unique financing instrument (a pandemic bond) to help financially disadvantaged countries have access to capital, to deal with a pandemic in the event that such a thing takes place.

Nice thought… right? Continue reading and you will see how the author of this must be none other than Dr. Nefario himself, from Despicable Me.

Dr. Nefario

If you’ve been through the REIT Masters course then you must already be familiar with how Bonds work as a funding instrument.

In its most basic sense, its a debt-based instrument that pays a set amount of interest (called coupon rate) and at maturity, you get your principle back (subject to the conditions of the bond).

The Pandemic Bonds however, are very strange in the way they were setup.

Take a look at this:

World Bank Issued Pandemic Bonds

It is unclear as to what Class A and Class B mean (other than the differences highlighted in the table above) because the prospectus, well, it is nowhere to be found.

So trading began the day this was released in the media back in 2017. The maturity date, interestingly enough is July 15, 2020. With Class A paying LIBOR + 6.5%, which comes to 6.5% + 1.97% (last years LIBOR rate used as an example) = 8.47% for Class A and 13.07% for Class B.

However, between June 2017 and June 2020 (before the maturity date), you will still get the coupon rate paid out, unless there’s some fine print in the prospectus stating otherwise. Now I can’t see any prospectus for this thing anywhere… but the entire instrument looks and feels very very dodgy to say the least.

Now according to the Redemption rule stated in the table, if the pandemic strikes up to the time of the maturity date, a portion of the investment might be lost. However, remember, this is a tradable bond and if you read the entire article, you will notice that the World Bank said that they will also have a “derivative” of this bond as a trading instrument.

Derivatives by their very nature, are synthetic instruments backed by some other instrument, that other instrument… being the pandemic bonds in this case.

I’m upset with myself that I did not belong to the right mailing list to have received an invitation to participate in such a pandemic bond offering.

Besides the fact that I would have definitely put money into such a bond, at the same time, I would have also taken that as a HUGE cue that something big is coming.

You’ve got to understand, bankers don’t engage in charity. Its not part of their DNA. So if the World Bank is issuing a bond with a 37 month maturity date, with a 8-13% coupon rate and a $6m subscription value in a $500 million pool – it would take 30 seconds to look at the table and know, something BIG… like #F**CKING BIG is coming.

This was 2017. What else can I say.

Big clue: Coronavirus is the only “peril” covered under both classes.

By the way, did you hear about this anywhere? Did Channel 7, CNN, CNBC, Bloomberg or anyone else report this? Of course not.

PS: Old allies Germany and Japan started this. Bankers For Bandits a.k.a Switzerland is where they setup the trading and derivatives market for this and collected money from all over Europe and the US.

Now… you would look at this Bond offering and for the most part you might think that “what’s wrong with it”?

Nothing. Because I can’t access the prospectus for this particular pandemic bond, it is difficult for me to say exactly what the pros and cons of such an instrument might be.

Most importantly, knowing how much money actually reaches the poor nations from organisations like the World Bank, my first reaction is always skeptical because more than 70 years on, since the “Eradicate Poverty in Africa” campaign, Africa is still poor. So I don’t buy that this is for something good.

I believe this is an alert mechanism designed to trigger an underground response, almost like the “boarding call” for a flight, but only for those that are in the “know” that the plane is about to take off. Catch my drift?

Can you imagine how much money one could have made if they knew a pandemic of such proportions was 3 years away?

Quick diversion… speaking of Africa… you must… absolutely must, find and watch this documentary called Cold Case Hammarskjold. It will explain why Africa, despite its population density, has been far less impacted by the coronavirus than any other part of the planet.

You can find this documentary on YouTube, but you will need to login from a US based IP address and rent it from YouTube to watch it. But you must.

Especially, if you are from South Africa… you have to watch it. You owe it to Madiba, because the trump card exposing the substantive matter in this documentary was the Truth and Reconciliation Commission that he setup back in the 90s. This documentary shook me to the core… absolutely to the friggin’ core.

Its about a Swedish investigative journalist trying to find out what happened to Dag Hammarskjold in 1961, when his plane was shot down.

Dag Hammarskjold was the UN Secretary General at the time. But while investigating his death/murder, these guys uncovered something that is more shocking than anything you could ever imagine.

Look… I’ve mentioned many times in the past that this whole Covid thing was a carefully planned move. More and more people around the world are starting to accept this now because the way things are being run… any other narrative is just not acceptable.

Now… knowing what I have shared with you… it boils down to this.

Do you take it and file in the “nice to know” section of your brain or do you take this and go “I’m sick of being manipulate by the system” part of your brain and then do something about it.

What will you do?


Jede Entscheidung für etwas ist eine Entscheidung gegen etwas anderes

The above statement means:

Every decision for something, is a decision against something else.

Which language have I written this quote in and why?… get your brain cells working. You might find something profound hidden in this message. 🙂

Crisis Investing After Covid-19




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