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A magnitude 8.0 earthquake that struck Peru yesterday, Sunday 26th May, could trigger the IBRD CAR 120 catastrophe bond, which was part of the Pacific Alliance issuance, with the available data suggesting that a 30% loss of principal should be expected by investors in the cat bond.

The magnitude 8.0 earthquake struck Peru yesterday with the epicentre in a relatively sparsely populated area of the Amazon jungle, but it was the most intense quake to strike the country in twelve years, reports say, with damage quite widely reported to homes and commercial buildings.

Strong shaking was felt as far as 600 miles away from the epicentre, which was situated around 110 miles east of the town of Moyobamba, which is the capital of the San Martín region of north Peru.

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