Matt Levine has some great comments on this. As I understand it an issue with COVID-19 bonds could be that they are much less attractive than other types of CAT bonds due to the far greater correlation with the global economy.
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It seems to me the market is crying out for a new type of asset. Governments should issue Covid-response bonds. For the redeployment of capital to fighting the disease: emergency infrastructure, ventilator production, healthcare worker training. Etc.
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