Major hurricane Melissa has intensified further to sustained winds of 185 mph and its minimum central pressure has now deepened to 892mb, which with the storm’s eye now well into the parametric boxes of Jamaica’s $150 million IBRD CAR Jamaica 2024 catastrophe bond suggests a 100% payout of principal is likely.
Melissa is now close enough to Jamaica’s shoreline to say that it has passed into the parametric box arrangement for the World Bank facilitated catastrophe bond.
Landfall is anticipated very soon and for Jamaica’s population a dangerous few hours will ensue as the strongest winds rake the island in the landfall area and to its east.
At 892mb central pressure, hurricane Melissa is below the level required where any storm passing into any of the parametric boxes would trigger a total payout of the $150 million of cat bond principal.
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